EX-99.1

Derivative financial
liabilities(trading)

1,146,541,862

DCF Model, Closed form formula, Monte Carlo model, Black Scholes model, Hull and White Model, Net asset value and others

Interest rate, price of underlying asset, exchange rate, credit spread, discount rate, volatility

Derivative financial
liabilities(hedging)

Discount rate, exchange rate
and others

2,680,343,007

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KB SECURITIES CO., LTD.

and Subsidiaries

Consolidated Financial Statements

December 31, 2025 and 2024

(With Independent Auditor’s Report Thereon)

KB SECURITIES CO., LTD. and Subsidiaries

Index

December 31, 2025 and 2024


	Page(s)

Independent Auditor’s Report		1~3

Consolidated Financial Statements

Consolidated Statements of Financial Position		4

Consolidated Statements of Profit or Loss		5

Consolidated Statements of Comprehensive Income		6

Consolidated Statements of Changes in Equity		7~8

Consolidated Statements of Cash Flows		9

Notes to the Consolidated Financial Statements		10~151

Independent Auditor’s Report

(English Translation of a Report Originally Issued in Korean)

To the Board of Directors and Shareholders of KB Securities Co.,Ltd.

Opinion

We have audited the consolidated financial statements of KB Securities Co.,Ltd. and its subsidiaries (collectively referred to as the “Group”) which comprise the consolidated statements of financial position as at December 31, 2025 and 2024, and the consolidated statements of profit or loss, consolidated statements of comprehensive income, consolidated statements of changes in equity and consolidated statements of 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 KB Securities Co.,Ltd. and its subsidiaries as at December 31, 2025 and 2024, and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with International Financial Reporting Standards as adopted by the Republic of Korea (Korean IFRS).

Basis for Opinion

We conducted our audits 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

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

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.

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 05, 2026

This report is effective as of March 05, 2026, 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.

KB SECURITIES CO., LTD. and Subsidiaries

Consolidated Statements of Financial Position

December 31, 2025 and 2024


(in Korean won)	Notes		2025		2024
Assets
Cash and deposits		5,36,37,38		4,106,569,157,278		3,322,504,801,129
Financial assets at fair value through profit or loss		6,36,37,38		42,787,453,810,773		37,098,018,781,130
Derivative financial assets		7,36,37,38,39		1,614,613,117,421		1,394,203,700,793
Financial assets at fair value through other comprehensive income		8,36,37,38		9,463,744,417,319		6,485,291,405,839
Investments in associates		9		524,795,447,807		417,779,179,720
Financial assets measured at amortised cost		10,36,37,38,39		10,648,276,534,803		10,605,842,882,283
Property and equipment		11,40		246,132,957,110		264,565,054,272
Investment properties		12		112,303,626,799		419,452,413,193
Intangible assets		13		247,707,431,208		270,013,083,580
Current tax assets				7,263,856,076		6,817,736,155
Deferred tax assets		35		1,028,672,514		101,231,125,789
Other financial assets		14,36,37,38,39		6,323,965,381,055		2,813,756,957,484
Other assets		15		391,035,926,032		191,058,232,236

Total assets				76,474,890,336,195		63,390,535,353,603

Liabilities
Deposit liabilities		16,36,37,38		12,110,773,883,179		7,725,858,827,353
Financial liabilities at fair value through profit or loss		6,36,37,38,39		10,907,226,138,761		10,568,567,281,885
Derivative financial liabilities		7,36,37,38,39		2,088,322,937,570		1,924,224,653,973
Borrowings		17,36,37,38,39		37,823,437,013,085		33,454,601,384,335
Current tax liabilities				3,511,145,613		2,088,698,400
Net defined benefit liabilities		18		78,075,613,277		68,664,255,596
Deferred tax liabilities		35		83,098,965,782		—
Provisions		19		110,112,536,856		137,559,873,490
Other financial liabilities		20,36,37,38,39,40		5,861,140,105,763		2,210,452,579,371
Other liabilities		21		512,456,754,770		410,188,122,844

Total liabilities				69,578,155,094,656		56,502,205,677,247

Equity
Share capital		22		1,493,102,120,000		1,493,102,120,000
Hybrid securities		23		756,092,772,000		756,092,772,000
Other paid-in capital		24		1,479,259,900,170		1,479,259,900,170
Retained earnings		25		2,776,090,156,504		2,709,817,622,121
Other components of equity		26		359,346,515,034		366,918,638,122

Equity attributable to shareholders of the Parent Company				6,863,891,463,708		6,805,191,052,413
Non-controlling interest				32,843,777,831		83,138,623,943

Total equity				6,896,735,241,539		6,888,329,676,356

Total liabilities and equity				76,474,890,336,195		63,390,535,353,603

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

KB SECURITIES CO., LTD. and Subsidiaries

Consolidated Statements of Profit or Loss

Years Ended December 31, 2025 and 2024


(in Korean won)	Notes		2025		2024
Operating income
Fee and commission income		27		1,218,585,193,850		996,126,674,623
Gain on valuation and disposal of financial instruments		28		9,688,036,628,162		6,736,722,555,374
Interest income		29		1,767,647,609,350		1,786,484,002,043
Interest income from financial instruments at FVTPL				818,417,272,992		845,561,099,273
Interest income in applying of effective interest rate				949,230,336,358		940,922,902,770
Gain on valuation and disposal of financial assets measured at amortised costs		30		7,914,883,182		93,211,647,521
Gain on foreign currency transactions		31		1,197,533,309,395		1,003,250,074,144
Other operating income		32		268,507,921,807		216,235,771,509

				14,148,225,545,746		10,832,030,725,214

Operating expenses
Fee and commission expense		27		277,509,273,615		224,247,029,796
Loss on valuation and disposal of financial instruments		28		9,426,444,322,313		6,596,582,730,529
Interest expense		29		1,132,588,335,404		1,179,191,194,744
Loss on valuation and disposal of financial assets measured at amortised costs		30		175,763,491,187		145,590,870,688
Loss on foreign currency transactions		31		1,101,757,751,711		855,259,385,623
Selling and administrative expenses		33		1,070,713,550,424		980,571,344,291
Other operating expenses		32		51,877,818,853		69,801,692,335

				13,236,654,543,507		10,051,244,248,006

Operating profit				911,571,002,239		780,786,477,208
Non-operating income		34		112,942,456,111		79,952,919,885
Non-operating expenses		34		117,621,747,035		112,106,383,967

Profit before income tax				906,891,711,315		748,633,013,126
Income tax expense		35		224,506,293,054		158,272,192,817

Profit for the year				682,385,418,261		590,360,820,309

Profit attributable to:
Shareholders of the Parent Company				679,735,666,551		591,153,189,731
Non-controlling interest				2,649,751,710		(792,369,422	)

The above consolidated statements of profit or loss should be read in conjunction with the accompanying notes.

KB SECURITIES CO., LTD. and Subsidiaries

Consolidated Statements of Comprehensive Income

Years Ended December 31, 2025 and 2024


(in Korean won)	Notes		2025			2024
Profit for the year				682,385,418,261			590,360,820,309

Other comprehensive income(loss)
Items that will not be reclassified to profit or loss
Net gains on valuation of equity instruments at fair value through other comprehensive income		8,26		67,227,217,044			8,839,011,424
Fair value changes on financial liabilities designated at fair value due to own credit risk		6,26		(3,225,599,161	)		(5,514,924,589	)
Remeasurements of the net defined benefit liabilities		18,26		(6,236,623,659	)		(4,690,189,048	)
Revaluation of property and equipment		26		(867,736,179	)		—
Items that may be subsequently reclassified to profit or loss
Net gains(losses) on valuation of debt instrument at fair value through other comprehensive income		8,26		(38,367,096,425	)		(1,984,821,331	)
Share of other comprehensive income(loss) of associates		9,26		(786,671,104	)		6,533,680,406
Gains(losses) on hedge of net investments in foreign operations		7,26		6,040,168,716			(21,669,806,592	)
Exchange difference on translation of foreign operations		26		(27,915,387,535	)		66,396,452,674

Other comprehensive income for the year, net of tax				(4,131,728,303	)		47,909,402,944

Total comprehensive income for the year				678,253,689,958			638,270,223,253

Total comprehensive income for the year attributable to:
Shareholders of the Parent Company				677,300,111,295			636,999,680,242
Non-controlling interest				953,578,663			1,270,543,011

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

KB SECURITIES CO., LTD. and Subsidiaries

Consolidated Statements of Changes in Equity

Years Ended December 31, 2025 and 2024


(in Korean won)	Attributable to the Shareholder of the Parent Company
	Share Capital		Hybrid Securities		Other Paid In Capital		Retained Earnings			Other Components of Equity			Total			Non-controlling Interest			Total Equity
Balance at January 1, 2024		1,493,102,120,000		626,093,392,000		1,478,687,978,420		2,304,302,712,341			322,497,946,084			6,224,684,148,845			71,347,869,622			6,296,032,018,467
Issuance of hybrid securities		—		129,999,380,000		—		—			—			129,999,380,000			—			129,999,380,000
Dividends of hybrid securities		—		—		—		(37,064,078,424	)		—			(37,064,078,424	)		—			(37,064,078,424	)
Dividends		—		—		—		(150,000,000,000	)		—			(150,000,000,000	)		—			(150,000,000,000	)
Changes in scope of consolidation		—		—		571,921,750		—			—			571,921,750			10,520,211,310			11,092,133,060
Replacement due to disposal of equity investments at FVOCI		—		—		—		1,425,798,473			(1,425,798,473	)		—			—			—
Total comprehensive income
Profit for the year		—		—		—		591,153,189,731			—			591,153,189,731			(792,369,422	)		590,360,820,309
Gains on financial instruments at fair value through other comprehensive income		—		—		—		—			6,854,190,093			6,854,190,093			—			6,854,190,093
Fair value changes on financial liabilities designated at fair value due to own credit risk		—		—		—		—			(5,514,924,589	)		(5,514,924,589	)		—			(5,514,924,589	)
Share of other comprehensive income of associates		—		—		—		—			6,533,680,406			6,533,680,406			—			6,533,680,406
Revaluation of property and equipment		—		—				—			—			—			—			—
Remeasurements of net defined benefit liabilities		—		—		—		—			(4,690,189,048	)		(4,690,189,048	)		—			(4,690,189,048	)
Gains on hedge of net investments in foreign operations		—		—		—		—			(21,669,806,592	)		(21,669,806,592	)		—			(21,669,806,592	)
Exchange difference on translation of foreign operations		—		—		—		—			64,333,540,241			64,333,540,241			2,062,912,433			66,396,452,674

Balance at December 31, 2024		1,493,102,120,000		756,092,772,000		1,479,259,900,170		2,709,817,622,121			366,918,638,122			6,805,191,052,413			83,138,623,943			6,888,329,676,356

Balance at January 1, 2025		1,493,102,120,000		756,092,772,000		1,479,259,900,170		2,709,817,622,121			366,918,638,122			6,805,191,052,413			83,138,623,943			6,888,329,676,356
Dividends of hybrid securities		—		—		—		(38,599,700,000	)		—			(38,599,700,000	)		—			(38,599,700,000	)
Dividends		—		—		—		(580,000,000,000	)		—			(580,000,000,000	)		(1,176,318,032	)		(581,176,318,032	)
Changes in scope of consolidation		—		—		—		—			—			—			(50,072,106,743	)		(50,072,106,743	)
Replacement due to disposal of equity investments at FVOCI		—		—		—		1,051,211,175			(1,051,211,175	)		—			—			—
Replacement of Revaluation Surplus due to disposal of property and equipment		—		—		—		4,085,356,657			(4,085,356,657	)		—			—			—
Total comprehensive income
Profit for the year		—		—		—		679,735,666,551			—			679,735,666,551			2,649,751,710			682,385,418,261
Gains on financial instruments at fair value through other comprehensive income		—		—		—		—			29,108,189,243			29,108,189,243			(248,068,624	)		28,860,120,619

KB SECURITIES CO., LTD. and Subsidiaries

Consolidated Statements of Changes in Equity

Years Ended December 31, 2025 and 2024


Fair value changes on financial liabilities designated at fair value due to own credit risk	—	—	—	—	(3,225,599,161	)	(3,225,599,161	)	—		(3,225,599,161	)
Share of other comprehensive income of associates	—	—	—	—	(786,671,104	)	(786,671,104	)	—		(786,671,104	)
Revaluation of property and equipment	—	—		—	(867,736,179	)	(867,736,179	)	—		(867,736,179	)
Remeasurements of net defined benefit liabilities	—	—	—	—	(6,236,623,659	)	(6,236,623,659	)	—		(6,236,623,659	)
Gains on hedge of net investments in foreign operations	—	—	—	—	6,040,168,716		6,040,168,716		—		6,040,168,716
Exchange difference on translation of foreign operations	—	—	—	—	(26,467,283,112	)	(26,467,283,112	)	(1,448,104,423	)	(27,915,387,535	)

Balance at December 31, 2025	1,493,102,120,000	756,092,772,000	1,479,259,900,170	2,776,090,156,504	359,346,515,034		6,863,891,463,708		32,843,777,831		6,896,735,241,539

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

KB SECURITIES CO., LTD. and Subsidiaries

Consolidated Statements of Cash Flows

Years Ended December 31, 2025 and 2024


(in Korean won)	Notes	2025			2024
Cash flows from operating activities
Cash generated from operating activities
Profit for the year			682,385,418,261			590,360,820,309
Adjustment for non-cash items	43		(927,921,963,551	)		(235,405,440,147	)
Changes in operating assets and liabilities	43		(511,465,876,887	)		(1,481,806,807,935	)

			(757,002,422,177	)		(1,126,851,427,773	)
Interest received			1,730,075,332,554			1,723,472,495,685
Interest paid			(1,129,884,884,732	)		(1,162,048,104,085	)
Dividends received			102,789,420,208			87,216,895,805
Income taxes paid			(248,855,506,454	)		(265,384,713,273	)

Net cash used in operating activities			(302,878,060,601	)		(743,594,853,641	)

Cash flows from investing activities
Decrease(increase) in long-term deposit			(65,618,550,000	)		4,904,563,265
Acquisition of financial assets at fair value through other comprehensive income			(11,735,348,404,508	)		(5,810,505,707,282	)
Disposal of financial assets at fair value through other comprehensive income			8,826,609,065,903			4,537,478,148,513
Acquisition of investments of associates	9		(216,945,692,143	)		(189,694,468,319	)
Disposal of investment of associates	9		67,631,618,701			39,028,047,799
Net cash flows from the acquisition of subsidiaries			(9,505,746,848	)		—
Net cash flows from the disposal of subsidiaries			(55,401,797,923	)		4,899,392,910
Acquisition of property and equipment	11		(25,320,731,420	)		(29,580,876,276	)
Disposal of property and equipment	11		30,108,643,761			868,027,735
Acquisition of intangible assets	13		(57,380,348,151	)		(64,199,531,738	)
Disposal of intangible assets	13		1,531,416,125			11,587,324,372
Disposal of investment properties	12		1,459,865,433			—
Others			(33,327,025	)		(91,281,928	)

Net cash provided by investing activities			(3,238,213,988,095	)		(1,495,306,360,949	)

Cash flows from financing activities
Increase in borrowings	43		2,861,360,138,473			1,685,010,912,522
Issuance of debentures	43		2,000,000,000,000			1,658,655,508,229
Repayment of debentures	43		(831,900,000,000	)		(810,000,000,000	)
Increase(decrease) in guarantee deposit liabilities	43		492,762,533			(565,525,605	)
Dividends paid	25		(580,000,000,000	)		(150,000,000,000	)
Decrease of lease liabilities	43		(38,314,233,831	)		(46,492,571,462	)
Issuance of hybrid securities	23		—			129,999,380,000
Dividends of hybrid securities	25		(38,599,700,000	)		(42,652,275,000	)
Increase(decrease) in other liabilities	43		16,665,222,370			(32,697,142,966	)

Net cash provided by financing activities			3,389,704,189,545			2,391,258,285,718

Effect of exchange rate changes on cash and cash equivalents			1,156,578,093			15,979,335,695

Net increase in cash and cash equivalents			(150,231,281,058	)		168,336,406,823
Cash and cash equivalents at the beginning of the year	5		783,086,833,987			614,750,427,164

Cash and cash equivalents in consolidated statement of financial position as at the end of the year	5		632,855,552,929			783,086,833,987

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

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

1. General Information

General information of KB Securities Co., Ltd. (the “Parent Company” or “KB Securities”) which is a controlling company in accordance with Korean IFRS No.1110 Consolidated Financial Statements, and 69 subsidiaries including KBFG Securities America Inc. is as follows:

The Parent Company was established on June 1, 1962, under the name of Kookil Securities Co., Ltd. On June 5, 1986, the Parent Company changed its name to “Hyundai Securities Co., Ltd.”. After several capital increases, the share capital of the Parent Company amounts to W1,493,102 million as at December 31, 2025.

The Parent Company became a wholly owned subsidiary of KB Financial Group Inc. on October 19, 2016, through a comprehensive exchange of shares. At the end of the reporting period, KB Financial Group Inc. owns 100% of ordinary shares of the Parent Company.

Meanwhile, the Parent Company merged with KB Investment & Securities Co., Ltd. (the “KB Investment & Securities”) on December 30, 2016 as a surviving company and changed its name to KB Securities Co., Ltd. As at December 31, 2025, the Parent Company has 74 branch offices in Korea and two overseas branch offices.

Details of the consolidated subsidiaries as at December 31, 2025 and 2024, are as follows:


	2025
Investor	Investee	Industry	Percentage of ownership (%)	Location	Date of financial statements
The Parent Company	KBFG Securities America Inc.	Investment, advisory	100.00	USA	December
	KB Securities Hong Kong Ltd.	Investment, advisory	100.00	Hong Kong	December
	KB Securities Vietnam Joint Stock Company	Investment, advisory	99.81	Vietnam	December
	KB FINA COMPANY LIMITED(formely, KB FINA Joint Stock Company)	IT(Fintech)	100.00	Vietnam	December
	PT. KB Valbury Sekuritas	Investment, advisory	65.00	Indonesia	December
	KB Digital Innovation&growth New Technology Business Investment Fund ¹	Other financial	20.00	Korea	December
	KB Pre-IPO 2nd (TCB) New Technology Business Investment Fund 1 ¹	Other financial	42.86	Korea	December
	KB Global Contents Private Investment Fund ¹	Other financial	27.27	Korea	December
	KB Securities ESG Value Enhancement Fund	Other financial	93.75	Korea	December
	LB Ireland Private Real Estate Investment Trust 8	Funds	96.64	Korea	December
	Pacific US BlackRock Private Placement Real Estate Fund Investment Trust No. 15	Funds	98.51	Korea	December
	JB Dry Street Private Fund 1	Funds	100.00	Korea	December
	JB Australia108 Private Fund 1	Funds	100.00	Korea	December
	JB Forge Private Fund 1	Funds	100.00	Korea	December
	JB Hall Street Private Fund 1	Funds	100.00	Korea	December
	JB Margaret Street Private Fund 1	Funds	100.00	Korea	December
	GVA Europe Pre-IPO Private Investment Trust No.1	Funds	100.00	Korea	December
	LIFE Global Reits Pre-IPO General Private Investment Trust 1	Funds	99.89	Korea	December
	Star-Lord Alpha Flux General Investors Private Real Estate Investment Company No.11	Funds	99.78	Korea	December
	Global One Professional Investment Type Private U.S. Real Estate Investment Trust No. 2(H)	Funds	99.99	Korea	December
	PineStreet AIOFIII Infrastructure General Private Trust No.2	Funds	99.92	Korea	December
	Samsung Vista Credit BDC Private Investment No.2(USD)	Funds	99.93	Korea	December
	Mangrove Feeder Fund	Funds	71.63	Cayman Islands	December
	GH Real Estate I LP	Investment	81.00	Guernsey	December

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024


	2025
Investor	Investee	Industry	Percentage of ownership (%)	Location	Date of financial statements
	Able Gwonseon 1st Co., Ltd. ¹	Asset-backed securitization	—	Korea	December
	Newstar Gimpo 1st Co., Ltd ¹	Asset-backed securitization	—	Korea	December
	Able Sewoon Co., Ltd. ¹	Asset-backed securitization	—	Korea	December
	KB MyeongJi 1st Co.,Ltd. ¹	Asset-backed securitization	—	Korea	December
	KB Mapo 2nd Co.,Ltd. ¹	Asset-backed securitization	—	Korea	December
	Zitaress 1st Co., Ltd. ¹	Asset-backed securitization	—	Korea	December
	Newstar Gimpo 4th Co.,Ltd. ¹	Asset-backed securitization	—	Korea	December
	Powerplay 1st Co., Ltd. ¹	Asset-backed securitization	—	Korea	December
	Able Maseok 1st Co., Ltd. ¹	Asset-backed securitization	—	Korea	December
	Newstar Wave 1st Co., Ltd. ¹	Asset-backed securitization	—	Korea	December
	Able Next 1st Co., Ltd ¹	Asset-backed securitization	—	Korea	December
	YSMC 1st Co., Ltd. ¹	Asset-backed securitization	—	Korea	December
	Stoke 2nd Corp ¹	Asset-backed securitization	—	Korea	December
	Newstar Seongnam 1st Co.,Ltd ¹	Asset-backed securitization	—	Korea	December
	KPS Sihwa 1st Co., Ltd. ¹	Asset-backed securitization	—	Korea	December
	Able alpha Co., Ltd. ¹	Asset-backed securitization	—	Korea	December
	Newstar Gimpo 7th Co.,Ltd. ¹	Asset-backed securitization	—	Korea	December
	able hi position 1st ¹	Asset-backed securitization	—	Korea	December
	Able Yongin Wonsam 2nd Co.,Ltd. ¹	Asset-backed securitization	—	Korea	December
	TRUE HOUSE FIRST CO., LTD. ¹	Asset-backed securitization	—	Korea	December
	Able Gongpyeong 3rd Co.,Ltd ¹	Asset-backed securitization	—	Korea	December
	NEW STAR L CARD 1ST CO.,LTD. ¹	Asset-backed securitization	—	Korea	December
	Olivia 1st Co.,Ltd. ¹	Asset-backed securitization	—	Korea	December
	New Star Sinar Third Co., Ltd ¹	Asset-backed securitization	—	Korea	December
	New Star YJ Second Co., Ltd ¹	Asset-backed securitization	—	Korea	December
	HJ GALAXY No.4 Co.,ltd ¹	Asset-backed securitization	—	Korea	December
	Hyosung Vina Second Co., Ltd ¹	Asset-backed securitization	—	Korea	December
	newstarwoncle 1st. Co.ltd ¹	Asset-backed securitization	—	Korea	December
	NetFabric Suncheon First Co., Ltd. ¹	Asset-backed securitization	—	Korea	December
	KB Infra 4th Co.,Ltd. ¹	Asset-backed securitization	—	Korea	December
	Newstar Songam 1st Co.,ltd. ¹	Asset-backed securitization	—	Korea	December
	New Star SJ First Co., Ltd ¹	Asset-backed securitization	—	Korea	December
	New Star REITs First Co., Ltd ¹	Asset-backed securitization	—	Korea	December

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024


	2025
Investor	Investee	Industry	Percentage of ownership (%)	Location	Date of financial statements
	Newstar Cine 1st Co.,ltd. ¹	Asset-backed securitization	—	Korea	December
	MS Cheongna No.2 Co., Ltd. ¹	Asset-backed securitization	—	Korea	December
	Next Yeongjong First Co., Ltd. ¹	Asset-backed securitization	—	Korea	December
	New Star KM First Co., Ltd ¹	Asset-backed securitization	—	Korea	December
	Newstar Next 1st Co.,ltd. ¹	Asset-backed securitization	—	Korea	December
	Newstar Next 2nd Co.,ltd. ¹	Asset-backed securitization	—	Korea	December
	Newstar Doan first Co., Ltd ¹	Asset-backed securitization	—	Korea	December
	PAV Co., Ltd ¹	Asset-backed securitization	—	Korea	December
	Still No.1 2nd Co., Ltd ¹	Asset-backed securitization	—	Korea	December
	Newstar L Chemi 1st ¹	Asset-backed securitization	—	Korea	December
Mangrove Feeder Fund	Mangrove Master Fund	Funds	100.00	Cayman Islands	December
KB Securities Hong Kong Ltd.	Global Investment Opportunity Limited	Financial & real-estate	100.00	Malaysia	December

¹	The Group has a substantive power over the special purpose entities (“SPEs”) or investment trusts and is exposed to variable returns. Accordingly, these SPEs and investment trusts are included in subsidiaries although the Group’s ownership is less than 50%.


	2024
Investor	Investee	Industry	Percentage of ownership (%)	Location	Date of financial statements
The Parent Company	KBFG Securities America Inc.	Investment, advisory	100.00	USA	December
	KB Securities Hong Kong Ltd.	Investment, advisory	100.00	Hong Kong	December
	KB Securities Vietnam Joint Stock Company	Investment, advisory	99.81	Vietnam	December
	KB FINA Joint Stock Company	IT(Fintech)	100.00	Vietnam	December
	PT. KB Valbury Sekuritas	Investment, advisory	65.00	Indonesia	December
	KB Digital Innovation&growth New Technology Business Investment Fund ¹	Other financial	20.00	Korea	December
	KB Pre-IPO 2nd (TCB) New Technology Business Investment Fund ¹	Other financial	42.86	Korea	December
	JB New Jersey Private Real Estate Fund 1	Funds	98.15	Korea	December
	LB Ireland Private Real Estate Investment Trust 8	Funds	96.64	Korea	December
	Pacific US BlackRock Private Placement Real Estate Fund Investment Trust No. 15	Funds	98.51	Korea	December
	JB Dry Street Private Fund 1	Funds	100.00	Korea	December
	JB Australia108 Private Fund 1	Funds	100.00	Korea	December
	JB Forge Private Fund 1	Funds	100.00	Korea	December
	JB Hall Street Private Fund 1	Funds	100.00	Korea	December
	JB Margaret Street Private Fund 1	Funds	100.00	Korea	December
	GH Real Estate I LP	Investment	81.00	Guernsey	December
	GVA Europe Pre-IPO Private Investment Trust No.1	Funds	100.00	Korea	December
	LIFE Global Reits Pre-IPO General Private Investment Trust 1	Funds	99.89	Korea	December
	Able Gwonseon 1st Co., Ltd. ¹	Asset-backed securitization	—	Korea	December
	Newstar Gimpo 1st Co., Ltd ¹	Asset-backed securitization	—	Korea	December

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024


	2024
Investor	Investee	Industry	Percentage of ownership (%)	Location	Date of financial statements
	Able Sewoon Co., Ltd. ¹	Asset-backed securitization	—	Korea	December
	KB MyeongJi 1st Co.,Ltd. ¹	Asset-backed securitization	—	Korea	December
	Able Dangjin 1st Co.,Ltd. ¹	Asset-backed securitization	—	Korea	December
	KB Mapo 2nd Co.,Ltd. ¹	Asset-backed securitization	—	Korea	December
	Able Wonchang 1st Co., Ltd. ¹	Asset-backed securitization	—	Korea	December
	Zitaress 1st Co., Ltd. ¹	Asset-backed securitization	—	Korea	December
	Able Beomeo-one Co., Ltd. ¹	Asset-backed securitization	—	Korea	December
	Newstar Gimpo 4th Co.,Ltd. ¹	Asset-backed securitization	—	Korea	December
	Powerplay 1st Co., Ltd. ¹	Asset-backed securitization	—	Korea	December
	Able Dosan 1st Co., Ltd ¹	Asset-backed securitization	—	Korea	December
	Able Maseok 1st Co., Ltd. ¹	Asset-backed securitization	—	Korea	December
	TW Seocho 1st Co., Ltd. ¹	Asset-backed securitization	—	Korea	December
	TW Seocho 2nd Co., Ltd. ¹	Asset-backed securitization	—	Korea	December
	Newstar Wave 1st Co., Ltd. ¹	Asset-backed securitization	—	Korea	December
	Able Next 1st Co., Ltd ¹	Asset-backed securitization	—	Korea	December
	YSMC 1st Co., Ltd. ¹	Asset-backed securitization	—	Korea	December
	Gyeongsan Logis 1st Co., Ltd ¹	Asset-backed securitization	—	Korea	December
	Stoke 2nd Corp ¹	Asset-backed securitization	—	Korea	December
	KB Global Contents Private Investment Fund ¹	Other financial	27.27	Korea	December
	Newstar Seongnam 1st Co.,Ltd ¹	Asset-backed securitization	—	Korea	December
	KPS Sihwa 1st Co., Ltd. ¹	Asset-backed securitization	—	Korea	December
	Newstar NRB First Co., Ltd. ¹	Asset-backed securitization	—	Korea	December
	Able alpha Co., Ltd. ¹	Asset-backed securitization	—	Korea	December
	Star-Lord Alpha Flux General Investors Private Real Estate Investment Company No.11	Funds	99.78	Korea	December
	KB Securities ESG Value Enhancement Fund	Other financial	93.75	Korea	December
	Able Eunhwasam 2nd Co., Ltd. ¹	Asset-backed securitization	—	Korea	December
	Newstar Sina 2nd Co., Ltd. ¹	Asset-backed securitization	—	Korea	December
	Newstar Gimpo 7th Co.,Ltd. ¹	Asset-backed securitization	—	Korea	December
	NewStar Yui the 1st ¹	Asset-backed securitization	—	Korea	December
	able hi position 1st ¹	Asset-backed securitization	—	Korea	December
	Graha 2nd Co., Ltd.¹	Asset-backed securitization	—	Korea	December
	Able Yongin Wonsam 2nd Co.,Ltd. ¹	Asset-backed securitization	—	Korea	December
	ABLE GUNPO 1ST CO.,LTD. ¹	Asset-backed securitization	—	Korea	December
	TRUE HOUSE FIRST CO., LTD. ¹	Asset-backed securitization	—	Korea	December

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024


	2024
Investor	Investee	Industry	Percentage of ownership (%)	Location	Date of financial statements
	Breeze Air Primary Co.,Ltd. ¹	Asset-backed securitization	—	Korea	December
	Able Gongpyeong 3rd Co.,Ltd ¹	Asset-backed securitization	—	Korea	December
	NEW STAR L CARD 1ST CO.,LTD. ¹	Asset-backed securitization	—	Korea	December
	Olivia 1st Co.,Ltd. ¹	Asset-backed securitization	—	Korea	December
	THE APOGEE THE FIRST CO.,LTD. ¹	Asset-backed securitization	—	Korea	December
	EULJI NAIN 1ST CO.,LTD. ¹	Asset-backed securitization	—	Korea	December
	E&F Blacksapphire Private Equity Fund	Other financial	98.76	Korea	December
	Global One Professional Investment Type Private U.S. Real Estate Investment Trust No. 2(H)	Funds	99.99	Korea	December
	Able Civic 4th Co., Ltd. ¹	Asset-backed securitization	—	Korea	December
	NEWSTAR EXPER 1ST CO.,LTD. ¹	Asset-backed securitization	—	Korea	December
	Mangrove Feeder Fund	Funds	74.90	Cayman Islands	December
Mangrove Feeder Fund	Mangrove Master Fund	Funds	100.00	Cayman Islands	December
KB Securities Hong Kong Ltd.	Global Investment Opportunity Limited	Financial & real-estate	100.00	Malaysia	December
E&F Blacksapphire Private Equity Fund	Black Sapphire Holdings Co.,Ltd.	Other financial	100.00	Korea	December
The Parent Company. YSMC 1st Co., Ltd.	K-1 23th Yeoksam Real Estate Investment Trust Company	Real-estate Investment	51.11	Korea	December

¹	The Group has a substantive power over the special purpose entities (“SPEs”) or investment trusts and is exposed to variable returns. Accordingly, these SPEs and investment trusts are included in subsidiaries although the Group’s ownership is less than 50%.

Summarized financial information of major subsidiaries as at and for the years ended December 31, 2025 and 2024, is as follows:


(in thousands of Korean won)	December 31, 2025				2025
Name of subsidiary	Assets		Liabilities		Operating profit		Profit (loss) for the year			Total comprehensive income(loss)
KBFG Securities America Inc.		40,232,659		3,407,150		24,127,770		11,800,416			11,296,043
KB Securities Hong Kong Ltd.		329,258,232		27,059,189		32,834,058		15,138,328			7,694,138
KB Securities Vietnam Joint Stock Company		692,931,158		444,411,064		61,871,812		11,349,528			(2,228,063	)
KB FINA COMPANY LIMITED(formely, KB FINA Joint Stock Company)		2,327,616		4,931		6,563		(170,558	)		(311,786	)
PT. KB Valbury Sekuritas		242,695,761		150,190,089		34,158,077		7,516,684			2,736,180
LB Ireland Private Real Estate Investment Trust 8		57,101		4,383,978		1,245		(239,679	)		(239,679	)
Mangrove Feeder Fund		12,637,369		14,402		—		(612,121	)		(2,150,623	)
Mangrove Master Fund		26,427,117		8,904,190		2,554,967		1,487,459			(438,035	)
GH Real Estate I LP		29,116,238		1,708,208		—		(2,368,340	)		300,148
Global Investment Opportunity Limited		195,235		—		1,105		(17,544	)		(22,910	)
Pacific US BlackRock Private Placement Real Estate Fund Investment Trust No. 15		2,906,682		241,827		4,395,493		4,211,581			4,211,581

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024


(in thousands of Korean won)	December 31, 2025				2025
Name of subsidiary	Assets		Liabilities		Operating profit		Profit (loss) for the year			Total comprehensive income(loss)
KB Digital Innovation&growth New Technology Business Investment Fund		9,713,414		144,100		3,084,181		1,832,131			1,832,131
KB Pre-IPO 2nd (TCB) New Technology Business Investment Fund 1		18,240,494		341,266		13,303,583		10,555,334			10,555,334
JB Dry Street Private Fund 1		112,070		9,230		5,312		(89,614	)		(89,614	)
JB Australia108 Private Fund 1		68,241		3,554		4,978		(62,665	)		(62,665	)
JB Forge Private Fund 1		48,977		2,882		2,498		(44,857	)		(44,857	)
JB Hall Street Private Fund 1		116,235		3,224		5,173		(82,282	)		(82,282	)
JB Margaret Street Private Fund 1		31,606		668		1,438		(23,385	)		(23,385	)
KB Global Contents Private Investment Fund		14,356,793		6,405		2,496		(1,331,692	)		(1,331,692	)
GVA Europe Pre-IPO Private Investment Trust No.1		26,154,749		16,975		18,669		1,225,242			1,225,242
LIFE Global Reits Pre-IPO General Private Investment Trust 1		59,395,925		35,392		3,991		4,086,257			4,086,257
Star-Lord Alpha Flux General Investors Private Real Estate Investment Company No. 11		98,066,853		102,685,801		4,574,599		(35,702,583	)		(35,702,583	)
KB Securities ESG Value Enhancement Fund		2,972,631		1,430		485		(91,095	)		(91,095	)
Global One Professional Investment Type Private U.S. Real Estate Investment Trust No. 2(H)		1,247,218		25		132		(192,020	)		(228,979	)
PineStreet AIOFIII Infrastructure General Private Trust No.2		4,741,478		51,688		53,300		(41,989	)		(41,989	)
Samsung Vista Credit BDC Private Investment No.2 (USD)		21,538,294		6,058		459		(5,741	)		(508,448	)
Able Gwonseon 1st Co., Ltd.		15,441,859		15,355,797		838,634		17,223			17,223
Newstar Gimpo 1st Co., Ltd		22,426,428		22,341,941		2,074,982		347,266			347,266
Able Sewoon Co., Ltd.		4,010,520		3,110,931		2,248,542		1,742,216			1,742,216
KB MyeongJi 1st Co., Ltd.		10,565,777		10,970,839		1,094,510		(761,897	)		(761,897	)
KB Mapo 2nd Co., Ltd.		9,686,143		10,104,501		643,193		(79,844	)		(79,844	)
Zitaress 1st Co., Ltd.		13,920,792		13,221,711		891,670		340,876			340,876
Newstar Gimpo 4th Co., Ltd.		628,295		7,262,873		490,563		60,267			60,267
Powerplay 1st Co., Ltd.		9,410,968		15,161,151		738,673		(5,377,587	)		(5,377,587	)
Able Maseok 1st Co., Ltd.		3,985,918		4,081,361		1,341,776		364,322			364,322
Newstar Wave 1st Co., Ltd.		78,945,209		78,242,955		3,752,677		317,131			317,131
Able Next 1st Co., Ltd		20,404,750		21,157,794		704,547		(106,810	)		(106,810	)
YSMC 1st Co., Ltd.		47,749,856		46,800,000		14		1,169,670			1,169,670
Stoke 2nd Corp		46,255,750		81,745,000		5,476,268		(28,700,316	)		(28,700,316	)
Newstar Seongnam 1st Co., Ltd		3,264,977		3,101,481		681,427		77,947			77,947
KPS Sihwa 1st Co., Ltd.		189,180,028		266,594,862		13,472,756		(35,120,641	)		(35,120,641	)
Able alpha Co., Ltd.		28,279,824		28,815,682		1,764,593		864,588			864,588
Newstar Gimpo 7th Co., Ltd.		54,646,168		96,506,587		7,492,358		2,632,027			2,632,027
able hi position 1st		96,040,137		96,692,839		6,429,202		114,323			114,323
Able Yongin Wonsam 2nd Co., Ltd.		50,448,809		50,989,039		3,754,458		(301,178	)		(301,178	)
TRUE HOUSE FIRST CO., LTD.		15,806,571		15,391,084		1,559,107		214,921			214,921
Able Gongpyeong 3rd Co., Ltd		44,232,571		44,096,594		2,989,943		65,949			65,949
NEW STAR L CARD 1ST CO., LTD.		118,174,139		117,066,951		7,318,224		1,500,051			1,500,051
Olivia 1st Co., Ltd.		16,122,259		15,545,777		3,128,232		440,315			440,315
New Star Sinar Third Co., Ltd		29,963,490		29,819,053		3,817,336		144,437			144,437
New Star YJ Second Co., Ltd		101,571,593		101,814,025		5,111,186		(242,433	)		(242,433	)
HJ GALAXY No.4 Co., ltd		77,308,346		79,100,000		857,226		(1,791,656	)		(1,791,656	)
Hyosung Vina Second Co., Ltd		80,442,497		79,635,668		3,204,145		806,828			806,828
newstarwoncle 1st. Co. ltd		30,050,556		29,819,691		1,746,917		230,855			230,855
NetFabric Suncheon First Co., Ltd.		69,900,222		70,786,426		1,863,942		(886,214	)		(886,214	)

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024


(in thousands of Korean won)	December 31, 2025				2025
Name of subsidiary	Assets		Liabilities		Operating profit		Profit (loss) for the year			Total comprehensive income(loss)
KB Infra 4th Co., Ltd.		20,019,960		20,513,907		973,980		(493,948	)		(493,948	)
Newstar Songam 1st Co., ltd.		30,391,950		30,231,083		628,624		160,858			160,858
New Star SJ First Co., Ltd		30,176,874		30,268,673		237,622		(91,800	)		(91,800	)
New Star REITs First Co., Ltd		85,694,079		85,586,849		717,283		107,219			107,219
Newstar Cine 1st Co., ltd.		170,902,334		173,085,365		1,037,552		(2,183,041	)		(2,183,041	)
MS Cheongna No.2 Co., Ltd.		100,586,714		100,606,755		1,040,158		(20,042	)		(20,042	)
Next Yeongjong First Co., Ltd.		109,743,337		116,041,616		1,402,033		(6,298,289	)		(6,298,289	)
New Star KM First Co., Ltd		40,259,681		40,376,169		131,082		(116,490	)		(116,490	)
Newstar Next 1st Co., ltd.		54,851,677		55,947,995		671,298		(1,096,328	)		(1,096,328	)
Newstar Next 2nd Co., ltd.		24,885,748		25,657,260		589,787		(771,522	)		(771,522	)
Newstar Doan first Co., Ltd		110,686,759		110,953,639		161,992		(266,881	)		(266,881	)
PAV Co., Ltd		30,416,264		30,300,115		206,138		116,140			116,140
Still No.1 2nd Co., Ltd		50,776,001		50,841,723		877,105		(65,725	)		(65,725	)
Newstar L Chemi 1st		316,865,568		316,865,568		2,104,083		(1	)		(1	)
JB New Jersey Private Real Estate Fund 1 ¹		—		—		15		(60	)		(60	)
K-1 23th Yeoksam Real Estate Investment Trust Company ¹		—		—		5,673,979		(2,343,177	)		(2,343,177	)
E&F Blacksapphire Private Equity Fund ¹		—		—		—		(722,520	)		(722,520	)
Able Dangjin 1st Co.,Ltd. ¹		—		—		1,282,298		(132,710	)		(132,710	)
Able Wonchang 1st Co., Ltd. ¹		—		—		62		267,240			267,240
Able Beomeo-one Co., Ltd. ¹		—		—		2,037,821		1,817,541			1,817,541
Able Dosan 1st Co., Ltd ¹		—		—		223,013		(139,123	)		(139,123	)
TW Seocho 1st Co., Ltd. ¹		—		—		10,062,742		(35,976,631	)		(35,976,631	)
TW Seocho 2nd Co., Ltd. ¹		—		—		1,827,203		(29,031,254	)		(29,031,254	)
Gyeongsan Logis 1st Co., Ltd ¹		—		—		916,997		(4,070,233	)		(4,070,233	)
Newstar NRB First Co., Ltd. ¹		—		—		1,147,001		820,512			820,512
Newstar Sina 2nd Co., Ltd. ¹		—		—		9,237,352		970,985			970,985
ABLE GUNPO 1ST CO., LTD. ¹		—		—		577,447		(145,534	)		(145,534	)
Breeze Air Primary Co.,Ltd. ¹		—		—		2,754,784		(33,394	)		(33,394	)
THE APOGEE THE FIRST CO., LTD. ¹		—		—		1,645,191		811,498			811,498
Able Civic 4th Co., Ltd. ¹		—		—		1,332,125		(407,806	)		(407,806	)
NEWSTAR EXPER 1ST CO., LTD. ¹		—		—		13,050,226		2,736,298			2,736,298
New Star kumkang 1st Co., Ltd. ¹		—		—		10,674,909		75,080			75,080
Buu 1st Co., Ltd. ¹		—		—		109,073		(234,021	)		(234,021	)
Prime Twin Co., Ltd ¹		—		—		297,034		(483,610	)		(483,610	)
New Star Smile First Co., Ltd ¹		—		—		2,412,202		(285,066	)		(285,066	)
Newstar Solution 2nd Co., Ltd ¹		—		—		655,668		(202,082	)		(202,082	)
Sepia 1st Co., Ltd. ¹		—		—		54,918		(382,907	)		(382,907	)
ZeroWind pungmu First Co., Ltd. ¹		—		—		13,229		(303,238	)		(303,238	)
newstarseongsu 1st. Co. ltd ¹		—		—		156,000		(177,921	)		(177,921	)

¹	These companies are excluded from subsidiaries as at December 31, 2025.


(in thousands of Korean won)	December 31, 2024				2024
Name of subsidiary	Assets		Liabilities		Operating profit		Profit (loss) for the year			Total comprehensive income(loss)
KBFG Securities America Inc.		29,454,978		3,925,511		15,942,384		5,349,316			8,193,302
KB Securities Hong Kong Ltd.		322,077,995		27,573,090		34,975,931		5,010,632			42,442,728
KB Securities Vietnam Joint Stock Company		498,369,887		247,711,661		62,760,647		12,931,044			32,194,535
KB FINA Joint Stock Company		2,825,649		191,178		135,030		(7,100,031	)		(6,620,633	)

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024


(in thousands of Korean won)	December 31, 2024				2024
Name of subsidiary	Assets		Liabilities		Operating profit		Profit (loss) for the year			Total comprehensive income(loss)
PT. KB Valbury Sekuritas		132,899,592		43,130,100		24,673,008		4,592,286			11,181,484
JB New Jersey Private Real Estate Fund 1		56,720		403		3,026		(15,900,215	)		(15,900,215	)
LB Ireland Private Real Estate Investment Trust 8		56,280		4,143,478		1,782		(257,351	)		(257,351	)
Mangrove Feeder Fund		18,580,918		18,487		—		(872,877	)		1,055,937
Mangrove Master Fund		32,238,326		10,114,638		2,408,779		607,124			556,423
GH Real Estate I LP		28,473,558		1,365,676		—		(2,012,020	)		(134,743	)
Global Investment Opportunity Limited		218,145		—		1,615		(19,901	)		7,988
Pacific US BlackRock Private Placement Real Estate Fund Investment Trust No. 15		6,401,893		1,496,961		2,279,870		(2,135,681	)		(2,135,681	)
KB Digital Innovation&growth New Technology Business Investment Fund		7,890,172		152,990		564,375		(93,036	)		(93,036	)
KB Pre-IPO 2nd (TCB) New Technology Business Investment Fund		25,661,250		432,356		6,794,487		811,785			811,785
Able Gwonseon 1st Co., Ltd.		13,676,445		13,607,606		1,068,184		83,897			83,897
JB Dry Street Private Fund 1		201,692		9,239		6,895		(17,362	)		(17,362	)
JB Australia108 Private Fund 1		130,906		3,555		5,488		(12,143	)		(12,143	)
JB Forge Private Fund 1		93,835		2,882		5,468		(8,700	)		(8,700	)
JB Hall Street Private Fund 1		198,516		3,223		6,743		(15,914	)		(15,914	)
JB Margaret Street Private Fund 1		54,995		672		1,871		(4,526	)		(4,526	)
Newstar Gimpo 1st Co., Ltd		39,827,673		40,090,452		11,720,670		9,688,247			9,688,247
Able Sewoon Co., Ltd.		24,430,465		25,273,091		1,310,863		(990,005	)		(990,005	)
KB MyeongJi 1st Co.,Ltd.		15,625,181		15,268,346		1,232,649		6,165			6,165
Able Dangjin 1st Co.,Ltd.		26,845,170		25,784,933		2,641,956		737,641			737,641
KB Mapo 2nd Co.,Ltd.		9,955,880		10,294,395		699,865		473,045			473,045
Able Wonchang 1st Co., Ltd.		9,349,684		10,560,000		763,969		137,169			137,169
Zitaress 1st Co., Ltd.		20,526,071		20,167,866		1,117,426		211,688			211,688
Able Beomeo-one Co., Ltd.		31,459,239		31,074,021		1,741,681		663,544			663,544
Newstar Gimpo 4th Co.,Ltd.		597,458		7,292,304		499,363		(12,916	)		(12,916	)
Powerplay 1st Co., Ltd.		13,150,423		13,523,019		404,946		(574,832	)		(574,832	)
Able Dosan 1st Co., Ltd		4,352,179		2,573,638		855,394		862,146			862,146
Able Maseok 1st Co., Ltd.		16,815,745		17,275,510		5,068,705		1,414,227			1,414,227
TW Seocho 1st Co., Ltd.		200,494,321		198,447,658		16,667,785		5,844,657			5,844,657
TW Seocho 2nd Co., Ltd.		32,208,486		31,281,734		4,182,068		1,676,119			1,676,119
Newstar Wave 1st Co., Ltd.		83,721,465		83,336,342		7,057,512		3,466,095			3,466,095
Able Next 1st Co., Ltd		20,417,274		21,063,508		1,402,326		(598,237	)		(598,237	)
YSMC 1st Co., Ltd.		47,680,186		47,900,000		13		731,524			731,524
Gyeongsan Logis 1st Co., Ltd		18,585,684		18,599,662		230,795		(183,069	)		(183,069	)
Stoke 2nd Corp		69,530,565		76,319,500		5,535,046		(7,568,667	)		(7,568,667	)
KB Global Contents Private Investment Fund		15,682,080		—		4,268		(265,948	)		(265,948	)
Newstar Seongnam 1st Co.,Ltd		1,944,770		1,859,222		2,947,194		1,007,564			1,007,564
KPS Sihwa 1st Co., Ltd.		218,185,315		260,479,507		17,178,878		(40,335,228	)		(40,335,228	)
Newstar NRB First Co., Ltd.		17,984,328		19,331,133		2,594,001		347,089			347,089
GVA Europe Pre-IPO Private Investment Trust No.1		29,638,647		20,032		3,688		2,182,228			2,182,228
LIFE Global Reits Pre-IPO General Private Investment Trust 1		59,383,526		24,950		12,061		4,401,787			4,401,787
Star-Lord Alpha Flux General Investors Private Real Estate Investment Company No.11		129,639,678		98,556,042		5,535,662		(7,152,201	)		(7,152,201	)
Able alpha Co., Ltd.		24,312,869		25,713,315		1,757,302		(1,056,473	)		(1,056,473	)

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024


(in thousands of Korean won)	December 31, 2024				2024
Name of subsidiary	Assets		Liabilities		Operating profit		Profit (loss) for the year			Total comprehensive income(loss)
K-1 23th Yeoksam Real Estate Investment Trust Company		301,209,424		168,924,135		10,188,322		434,502			434,502
KB Securities ESG Value Enhancement Fund		1,996,726		1,430		538		(92,297	)		(92,297	)
Able Eunhwasam 2nd Co., Ltd.		42,955,135		44,324,704		8,439,125		1,678,170			1,678,170
Newstar Sina 2nd Co., Ltd.		74,387,881		73,529,437		15,460,085		1,852,670			1,852,670
Newstar Gimpo 7th Co.,Ltd.		52,004,996		96,497,442		6,340,484		(44,492,457	)		(44,492,457	)
NewStar Yui the 1st		100,316,599		101,385,834		7,263,486		(1,069,246	)		(1,069,246	)
able hi position 1st		86,563,317		87,330,342		4,450,126		(767,026	)		(767,026	)
Graha 2nd Co., Ltd.		20,473,692		20,461,687		759,786		12,004			12,004
Able Yongin Wonsam 2nd Co.,Ltd.		50,297,134		50,536,186		1,997,382		(239,052	)		(239,052	)
ABLE GUNPO 1ST CO.,LTD.		18,381,451		18,874,773		820,265		(493,322	)		(493,322	)
TRUE HOUSE FIRST CO., LTD.		29,957,465		29,756,900		1,108,310		200,555			200,555
Breeze Air Primary Co.,Ltd.		100,684,566		100,832,748		2,200,356		(148,192	)		(148,192	)
Able Gongpyeong 3rd Co.,Ltd		58,382,203		58,312,176		1,723,871		70,018			70,018
NEW STAR L CARD 1ST CO.,LTD.		147,837,864		148,230,726		2,076,295		(392,863	)		(392,863	)
Olivia 1st Co.,Ltd.		73,445,399		73,309,232		1,238,200		136,157			136,157
THE APOGEE THE FIRST CO., LTD.		39,308,171		39,276,887		318,491		31,274			31,274
EULJI NAIN 1ST CO., LTD.		38,589,392		39,236,893		585,154		(647,503	)		(647,503	)
E&F Blacksapphire Private Equity Fund		39,900,138		3,789		138		(603,651	)		(603,651	)
Black Sapphire Holdings Co., Ltd.		175,847,940		140,837,315		56,835		(3,989,375	)		(3,989,375	)
Global One Professional Investment Type Private U.S. Real Estate Investment Trust No. 2(H)		1,476,198		26		36		(15,122	)		60,913
Able Civic 4th Co., Ltd.		54,734,596		54,990,678		264,115		(256,092	)		(256,092	)
NEWSTAR EXPER 1ST CO., LTD.		583,210,024		583,987,264		953,080		(777,240	)		(777,240	)
Newstar JH Center Co., Ltd.¹		—		—		2,549,414		981,219			981,219
Newstar Sina Co., Ltd.¹		—		—		1,979,995		25,050			25,050
Lalaroro 1st Co., Ltd.¹		—		—		554,229		34,054			34,054
French Shine 1st Co., Ltd.¹		—		—		1,574,900		142,774			142,774
KB Infra 2nd Co., Ltd.¹		—		—		3,766,827		2,916,891			2,916,891
ABR Joongang2 1st Co.,Ltd¹		—		—		1,148,655		43,405			43,405
Able MK 1st co.ltd¹		—		—		2,308,411		14			14
Able Civic Third Co., Ltd.¹		—		—		378,748		211			211
Newstar Believe Co., Ltd.¹		—		—		793,424		582,759			582,759
Able NJ DSM Investment REIT¹		—		—		73,467		(20,373,868	)		(24,011,561	)
Able PT 1st Co., Ltd ¹		—		—		335,359		39,151			39,151
KB Gold 1st Co.,Ltd. ¹		—		—		742,077		(124,010	)		(124,010	)
Able Gongpyeong 1st Co.,Ltd ¹		—		—		465,322		59,589			59,589
Vestas Qualified Investors’ Private Real Estate Fund Investment Trust No. 38 ¹		—		—		422,989		343,694			343,694
Able Gasan 1st Co., Ltd. ¹		—		—		367,506		59,815			59,815
Able Bonri 1st Co., Ltd. ¹		—		—		7,308,998		(740,605	)		(740,605	)
Newstar Enerbil 1st Co., Ltd. ¹		—		—		393,852		(52,307	)		(52,307	)
Newstar Plus 1st Co., Ltd. ¹		—		—		269,260		(2,144	)		(2,144	)
Bighouse 7th Co., Ltd. ¹		—		—		3,113,874		1,519,228			1,519,228
HD Value 1st Co., Ltd. ¹		—		—		1,322,380		(479,809	)		(479,809	)
ABLE NJ DSM LLC ¹		—		—		1,647,158		180,171			(1,612,552	)
Keppel Private Real Estate Investment Trust No.13 ¹		—		—		924,910		(147,569	)		(147,569	)
Lamdamine 1st Co.,Ltd ¹		—		—		—		—			—
KB SmartSchool 1st Co., Ltd. ¹		—		—		—		—			—
Able Chowall 2nd Co., Ltd. ¹		—		—		—		—			—
Able TY 2nd Co., Ltd. ¹		—		—		—		—			—

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

(in thousands of Korean won)

December 31, 2024

2024

Name of subsidiary

Assets

Liabilities

Operating
profit

Profit (loss)
for the year

Total

comprehensive
income(loss)

Able Dongtan 1st Co., Ltd. ¹

—

PT. Valbury Capital Management ¹

—

GDIC 2nd co.ltd ¹

—

Able Yongdap 2nd Co., Ltd. ¹

—

KB Samyoung Co., Ltd. ¹

—

Able Banpo 1st Co., Ltd. ¹

—

Able Banpo 2nd Co., Ltd. ¹

—

Newstar Gimpo 5th Co.,Ltd. ¹

—

KB Osansegyo 2nd Co.,Ltd. ¹

—

Newstar one-firm 2023-1 1st. Co., Ltd. ¹

—

Newstar one-firm 2023-1 3rd. Co., Ltd. ¹

—

Newstar one-firm 2023-1 4th. Co., Ltd. ¹

—

Newstar one-firm 2023-1 5th. Co., Ltd. ¹

—

Newstar IP Co., Ltd. ¹

—

Newstar Yangju Station 1st Co., Ltd. ¹

—

KB Tongyoung 1st Co., Ltd ¹

—

¹	These companies are excluded from subsidiaries as at December 31, 2024.

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

The details of changes in scope for consolidation for the year ended December 31, 2025, are as follows:

(a)

Subsidiaries newly included in the consolidation


Name of entity		Reason
New Star kumkang 1st Co., Ltd.		Holding power over the relevant activities in the event of default and being a provider of credit facilities or purchase commitments, or being exposed to significant variable gains from the acquisition of subordinated bonds.
Buu 1st Co., Ltd.
New Star Sinar Third Co., Ltd
Prime Twin Co., Ltd
New Star YJ Second Co., Ltd
New Star Smile First Co., Ltd
HJ GALAXY No.4 Co.,ltd
Newstar Solution 2nd Co., Ltd
Sepia 1st Co., Ltd.
ZeroWind pungmu First Co., Ltd.
Hyosung Vina Second Co., Ltd
newstarwoncle 1st. Co.ltd
NetFabric Suncheon First Co., Ltd.
KB Infra 4th Co.,Ltd.
newstarseongsu 1st. Co.ltd
Newstar Songam 1st Co.,ltd.
PineStreet AIOFIII Infrastructure General Private Trust No.2		Holding power or being exposed to significant variable gains from the relevant activities of subsidiaries
MS Cheongna No.2 Co., Ltd.		Holding power over the relevant activities in the event of default and being a provider of credit facilities or purchase commitments, or being exposed to significant variable gains from the acquisition of subordinated bonds.
New Star SJ First Co., Ltd
New Star REITs First Co., Ltd
Newstar Cine 1st Co.,ltd.
Samsung Vista Credit BDC Private Investment No.2		Holding power or being exposed to significant variable gains from the relevant activities of subsidiaries
Next Yeongjong First Co., Ltd.		Holding power over the relevant activities in the event of default and being a provider of credit facilities or purchase commitments, or being exposed to significant variable gains from the acquisition of subordinated bonds.
New Star KM First Co., Ltd
Newstar Next 1st Co.,ltd.
Newstar Next 2nd Co.,ltd.
Newstar Doan first Co., Ltd
PAV Co., Ltd
Still No.1 2nd Co., Ltd
Newstar L Chemi 1st

(b)

Subsidiaries excluded from the consolidation


Name of entity		Reason
Able Eunhwasam 2nd Co., Ltd.		End of payment guarantee contract
EULJI NAIN 1ST CO.,LTD.		End of payment guarantee contract
NewStar Yui the 1st		End of payment guarantee contract
Graha 2nd Co., Ltd.		End of payment guarantee contract
Black Sapphire Holdings Co.,Ltd.		Disposal
E&F Blacksapphire Private Equity Fund		Disposal
Buu 1st Co., Ltd.		End of payment guarantee contract
Prime Twin Co., Ltd		End of payment guarantee contract
Able Civic 4th Co., Ltd.		End of payment guarantee contract
ABLE GUNPO 1ST CO.,LTD.		End of payment guarantee contract
Gyeongsan Logis 1st Co., Ltd		Repayment of loan
JB New Jersey Private Real Estate Fund 1		Liquidation
Sepia 1st Co., Ltd.		End of payment guarantee contract

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024


Able Dosan 1st Co., Ltd		End of payment guarantee contract
New Star Smile First Co., Ltd		End of payment guarantee contract
K-1 23th Yeoksam Real Estate Investment Trust Company		Disposal
Breeze Air Primary Co., Ltd.		End of payment guarantee contract
Newstar NRB First Co., Ltd.		End of payment guarantee contract
Newstar Solution 2nd Co., Ltd		End of payment guarantee contract
ZeroWind pungmu First Co., Ltd.		End of payment guarantee contract
New Star kumkang 1st Co., Ltd.		Disposal
NEWSTAR EXPER 1ST CO., LTD.		End of payment guarantee contract
newstarseongsu 1st. Co. ltd		Disposal
Newstar Sina 2nd Co., Ltd.		End of payment guarantee contract
TW Seocho 1st Co., Ltd.		Disposal
TW Seocho 2nd Co., Ltd.		Disposal
Able Dangjin 1st Co., Ltd.		Disposal
Able Beomeo-one Co., Ltd.		Repayment of loan
THE APOGEE THE FIRST CO., LTD.		End of payment guarantee contract
Able Wonchang 1st Co., Ltd.		Repayment of loan

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

2. Material Accounting Policies

The material 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.

2.1 Basis of Preparation

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

Certain information attached to the Korean language financial statements, but not required for a fair presentation of the Group’s financial position, financial performance or cash flows, is not presented in the accompanying consolidated financial statements.

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

The consolidated financial statements have been prepared on the historical cost basis except for the following items:

•

Certain financial assets and liabilities (including derivatives instruments), certain classes of property, plant and equipment and investment properties measured at fair value

•

Assets held for sale measured at fair value less costs to sell, and

•

Defined benefit obligation and plan assets measured at fair value

The preparation of the consolidated financial statements requires the use of certain significant accounting estimates. Management also needs to exercise judgement in applying the Group’s accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in Note 3.

2.2 Changes in Accounting Policy and Disclosures

2.2.1 New and amended standards adopted by the Group

The Group has applied the following amended standards for the first time for its annual reporting period commencing January 1, 2025.

•

Amendment of Korean IFRS No.1021 “The Effects of Changes in Foreign Exchange Rates” and Korean IFRS No.1101 “First-time Adoption of International Financial Reporting Standards”—Lack of exchangeability

The amendments require the Group to estimate the exchangeability of the currency, and to disclose information related to the currency not exchangeable into the other currency with estimation of foreign exchange rates. These amendments do not have a significant impact on the consolidated financial statements.

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

•

Amendment of Korean IFRS No. 1117 “Insurance contracts”

If the estimation methods of input variables used to measure an insurance contract differ from the principled estimation methods required by insurance-related regulations, and if the differences and their impact on the financial statements are judged to be relevant and material to users of the financial statements, they are disclosed.

2.2.2 The following amended standards have been published that are not mandatory for December 31, 2025 reporting periods and have not been early adopted by the Group.

•

Amendments to Korean IFRS No. 1109 Financial Instruments and Korean IFRS No. 1107 Financial Instruments—Disclosure

The amendments of Korean IFRS 1109, Financial Instruments, and Korean IFRS 1107, Financial Instruments: Disclosure have been made for the purpose of addressing questions raised in practice and reflecting new requirements. The amendments should be applied for annual reporting periods beginning on or after January 1, 2026, and earlier application is permitted. The main amendments are as follows: The Group is in the process of reviewing the impact of these amendments on the consolidated financial statements.

•

Allowing financial liabilities to be considered settled (derecognized) through electronic payment systems before the settlement date, if certain criteria are met.

•

Clarifying and adding additional guidance for assessing whether a financial asset meets the criteria for payments of principal and interest only.

•

Disclosing the impact on the company and the extent to which the company is exposed, of contractual terms that change the timing or amount of cash flows under the contract, for each type of financial instrument.

•

Additional disclosures for equity instruments at designated FVOCI.

•

Annual Improvement of Korean IFRS Volume 11

Annual Improvements to Korean IFRS Volume 11 should be applied for annual reporting periods beginning on or after January 1, 2026, and earlier application is permitted. The Group does not expect that these amendments have a significant impact on the consolidated financial statements.

•

Korean IFRS No. 1101, First-Time Adoption of Korean IFRS : Application of Hedge Accounting upon First-Time Adoption of K-IFRS

•

Korean IFRS No. 1107, Financial Instruments: Disclosure: Derecognition of Profit and Loss, Guidance on Practice

•

Korean IFRS No. 1109, Financial Instruments: Derecognition of Lease Liabilities and Definition of Transaction Price

•

Korean IFRS No. 1110, Consolidated Financial Statements: Determination of De facto Agent

•

Korean IFRS No. 1007, Cash Flow Statement: Cost Method

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

•

Amendments to Korean Accounting Standards No. 1109, “Financial Instruments,” and Korean Accounting Standards No. 1107, “Financial Instruments: Disclosures”—Contracts Related to Power Reliant on Nature

The amendments define contracts related to power dependent on nature as contracts that expose companies to the volatility of the underlying electricity supply because the source of electricity generation depends on uncontrollable natural conditions (e.g., weather). The amendments also clarify that “contracts to purchase or sell power dependent on nature” are subject to the self-use exception. Furthermore, The amendments change hedge accounting requirements, including allowing the designation of “variable notional quantities” of “expected power transactions dependent on nature” as “hedged items,” and add related disclosures. These amendments are effective for the year beginning on or after January 1, 2026, with early adoption permitted. These amendments do not have a significant impact on the financial statements.

•

Enactment of Corporate Accounting Standards No. 1118, “Presentation and Disclosure of Financial Statements”

Korean IFRS 1118, “Presentation and Disclosure of Financial Statements,” replaces Korean IFRS 1001, “Presentation of Financial Statements.” The new presentation requirements introduced by Korean IFRS 1118, particularly regarding the definition of operating profit or loss, will enhance the comparability of financial performance across comparable companies. Furthermore, the disclosure requirement for “performance measures defined by management” will enhance transparency. The standard will be effective for the year beginning on or after January 1, 2027, with early adoption permitted. In accordance with the standard’s retrospective requirement, comparative information for the year ended December 31, 2026, will be restated in accordance with Korean IFRS 1118.

The Group has not yet adopted Korean IFRS 1118 and is currently assessing the impact of its adoption. The Group is developing a transition plan and is preparing, as scheduled, its first interim financial statements under No. 1118 for the period ended March 31, 2027, and its annual financial statements for the year ended December 31, 2027.

2.3 Consolidation

The Group has prepared the consolidated financial statements in accordance with Korean IFRS No. 1110 Consolidated Financial Statements.

(a)	Subsidiaries

Subsidiaries are all entities over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases.

The acquisition method of accounting is used to account for business combinations by the Group. The consideration transferred is measured at the fair values of the assets transferred, and identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. The Group recognizes any non-controlling interest in the acquired entity on an acquisition-by-acquisition basis either at fair value or at the non-controlling interest’s proportionate share of the acquired entity’s net identifiable assets. All other non-controlling interests are measured at fair values, unless otherwise required by other standards. Acquisition-related costs are expensed as incurred.

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

Meanwhile, 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 values on the consolidated financial statements of the ultimate parent entity. In addition, the difference between the sum of consolidated book values of the assets and liabilities transferred and accumulated other comprehensive income; and the consideration paid is recognized as capital surplus.

The excess of consideration transferred, amount of any non-controlling interest in the acquired entity and acquisition-date fair value of any previous equity interest in the acquired entity over the fair value of the net identifiable assets acquired is recorded as goodwill. If those amounts are less than the fair value of the net identifiable assets of the business acquired, the difference is recognized directly in the profit or loss as a bargain purchase.

Intergroup transactions, balances and unrealized gains on transactions between group companies are eliminated. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the transferred asset. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group.

(b)	Associates

Associates are entities over which the Group has significant influence but not control or joint control. Investments in associates are accounted for using the equity method of accounting, after initially being recognized at cost. Unrealized gains on transactions between the Group and its associates are eliminated to the extent of the Group’s interest in the associates. If the Group’s share of losses of an associate equals or exceeds its interest in the associate (including long-term interests that, in substance, form part of the Group’s net investment in the associate), 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 associate.

If there is objective evidence of impairment on the investment in the associate, the Group recognizes the difference between the recoverable amount of the associate and its book amount as impairment loss.

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

(c)	Joint Arrangements

A joint arrangement, wherein two or more parties have joint control, is classified as either a joint operation or a joint venture. A joint operator has rights to the assets, and obligations for the liabilities, relating to the joint operation and recognizes the assets, liabilities, revenues and expenses relating to its interest in a joint operation. A joint-venturer has rights to the net assets relating to the joint venture and accounts for that investment using the equity method.

2.4 Foreign Currency Translation

(a)

Functional and presentation currency

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

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

(b)

Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuation where items are remeasured. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in profit or loss. They are deferred in other comprehensive income if they relate to qualifying cash flow hedges and qualifying effective portion of hedge of net investments in foreign operations, or are attributable to monetary part of the net investment in a foreign operation.

Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined. Translation differences on assets and liabilities carried at fair value are reported as part of the fair value gain or loss. For example, translation differences on non-monetary assets and liabilities such as equities held at fair value through profit or loss are recognized in profit or loss as part of the fair value gain or loss and translation differences on non-monetary assets such as equities held at fair value through other comprehensive income are recognized in other comprehensive income.

2.5 Recognition and Measurement of Financial Instruments

2.5.1 Classification

The Group classifies financial assets as follows.

•

Those to be measured at fair value (through profit or loss or other comprehensive income)

•

Those to be measured at amortised cost

The classification depends on the Group’s business model for managing the financial assets and the contractual terms of the cash flows.

For financial assets measured at fair value, gains and losses will either be recorded in profit or loss or other comprehensive income. For investments in debt instruments, this will depend on the business model in which the investment is held. The Group reclassifies debt investments when, and only when its business model for managing those assets changes.

For investments in equity instruments that are not held for trading, this will depend on whether the Group has made an irrevocable election at the time of initial recognition to account for the equity investment at fair value through other comprehensive income. Changes in fair value of non-designated equity investment are recognized in profit or loss.

2.5.2 Measurement

At initial recognition, the Group measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed in profit or loss.

Financial assets with embedded derivatives are considered in their entirety when determining whether their cash flows are solely payment of principal and interest.

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

2.5.2.1 Debt instruments

Subsequent measurement of debt instruments depends on the Group’s business model for managing the asset and the cash flow characteristics of the asset. The Group classifies its debt instruments into one of the following three measurement categories:

(a)	Amortised cost

Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortised cost. A gain or loss on a debt investment that is subsequently measured at amortised cost and is not part of a hedging relationship is recognized in profit or loss when the asset is derecognized or impaired. Interest income from these financial assets is included in ‘interest income’ using the effective interest rate method.

(b)	Fair value through other comprehensive income

Assets that are held for collection of contractual cash flows and for selling the financial assets, where the assets’ cash flows represent solely payments of principal and interest, are measured at fair value through other comprehensive income. Movements in the carrying amount are taken through other comprehensive income, except for the recognition of impairment loss (reversal of impairment loss), interest income and foreign exchange gains and losses which are recognized in profit or loss. When the financial asset is derecognized, the cumulative gain or loss previously recognized in other comprehensive income is reclassified from equity to profit or loss. Interest income from these financial assets is included in ‘interest income’ using the effective interest rate method. Foreign exchange gains and losses are presented in ‘gain or loss on foreign currency transaction’ and impairment losses are presented in ‘loss on valuation and disposal of financial instrument’.

(c)	Fair value through profit or loss

Assets that do not meet the criteria for amortised cost or fair value through other comprehensive income are measured at fair value through profit or loss. A gain or loss on a debt investment that is subsequently measured at fair value through profit or loss and is not part of a hedging relationship is recognized in profit or loss and presented net in the statement of profit or loss within ‘gain or loss on valuation and disposal of financial instrument’ in the year in which it arises.

2.5.2.2 Equity instruments

The Group subsequently measures all equity investments at fair value. Where the Group’s management has elected to present fair value gains and losses on equity investments in other comprehensive income, there is no subsequent reclassification of fair value gains and losses to profit or loss following the derecognition of the investment. Dividend income from such investments continues to be recognized in profit or loss when the right to receive payments is established.

Changes in the fair value of financial assets at fair value through profit or loss are recognized in ‘gain or loss on valuation and disposal of financial instrument’ in the statement of profit or loss. Impairment loss (reversal of impairment loss) on equity investments measured at fair value through other comprehensive income are not reported separately from other changes in fair value.

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

2.5.3 Impairment

The Group assesses on a forward-looking basis expected credit losses associated with its debt instruments carried at amortised cost and fair value through other comprehensive income. The impairment methodology applied depends on whether there has been a significant increase in credit risk.

Expected credit losses are a probability-weighted estimate of credit losses (i.e. the present value of all cash shortfalls) over the expected life of the financial instrument. The Group measures expected credit losses by reflecting reasonable and supportable information that is reasonably available at the reporting date without undue cost or effort, including information about past events, current conditions and forecasts of future economic conditions.

The Group uses the following three measurement techniques in accordance with Korean IFRS:

•

General approach: for financial assets and off-balance-sheet unused credit line that below two approaches are not applied

•

Simplified approach: for receivables, contract assets and lease receivables

•

Credit-impaired approach: for purchased or originated credit-impaired financial assets

Different measurement approaches are applied depending on significant increase in credit risk. 12 month expected credit losses is recognized when credit risk has not significantly increased since initial recognition. A loss allowance at an amount equal to lifetime expected credit losses is recognized when credit risk has significantly increased since initial recognition. Lifetime is presumed to be a period to the contractual maturity date of a financial asset (the expected life of the financial asset).

The Group determines whether the credit risk has increased significantly since initial recognition using the following information. One or more of the following circumstances is deemed significant increase in credit risk.

•

More than 30 days past due;

•

Decline in credit rating at period end by more than certain notches as compared to that at initial recognition;

•

Decline in ratings below certain level in the early warning system;

Under simplified approach, the Group shall always measure the loss allowance at an amount equal to lifetime expected credit losses. Under credit-impaired approach, the Group shall only recognize the cumulative changes in lifetime expected credit losses since initial recognition as a loss allowance for purchased or originated credit-impaired financial assets.

The Group generally deems credit-impaired in case of one or more of the following circumstances:

•

90 days or more past due;

•

Legal proceedings related to collection;

•

Refinancing;

•

Corporate borrowers that are rated C or D;

•

Debt restructuring.

2.5.3.1 Forward-looking information

The Group uses forward-looking information, when it determines whether the credit risk has increased significantly since initial recognition and measures expected credit losses.

The Group assumes the risk component has a certain correlation with the business cycle, and calculates the expected credit loss by reflecting the forward-looking information with macroeconomic variables on the measurement inputs.

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

Forward-looking information used in calculation of expected credit loss is derived after comprehensive consideration of a variety of factors including scenario in management planning, risk situation scenario for stress test, third party forecast, and others.

2.5.3.2 Measuring expected credit losses on financial assets at amortised cost

The amount of the loss on financial assets at amortised cost is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows discounted at the financial asset’s original effective interest rate. The Group estimates expected future cash flows for financial assets that are individually significant (individual assessment of impairment).

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

•

Individual assessment of impairment

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

•

Collective assessment of impairment

Collective assessment of loss allowance involves historical loss experience along with incorporation of forward-looking information. Such process incorporates factors such as type of collateral, product and borrowers, credit rating, size of portfolio and recovery period and applies ‘probability of default’ (PD) on a company of assets and ‘loss given default’ (LGD) by type of recovery method. Also, the expected credit loss model involves certain assumption to determine input based on loss experience and forward-looking information. These models and assumptions are periodically reviewed to reduce gap between loss estimate and actual loss experience.

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

Measuring method of expected credit losses on financial assets at fair value through other comprehensive income is equal to the method of financial assets at amortised cost, except for loss allowances that are recognized as other comprehensive income. Amounts recognized in other comprehensive income for sale or repayment of financial assets at fair value through other comprehensive income are reclassified to profit or loss.

2.5.4 Recognition and Derecognition

Regular way purchases and sales of financial assets are recognized or derecognized on trade-date, the date on which the Group commits to purchase or sell the asset. Financial assets are derecognized when the rights to receive cash flows from the financial assets have expired or have been transferred and the Group has transferred substantially all the risks and rewards of ownership.

If a transfer does not result in derecognition because the Group has retained substantially all the risks and rewards of ownership of the transferred asset, the Group continues to recognize the transferred asset in its entirety and recognizes a financial liability for the consideration received. The Group classified the financial liability as “borrowings” in the statement of financial position.

The Group writes off the carrying amount and allowance of financial assets in its entirety or to a portion thereof when the principal and interest are determined to be no longer recoverable. In general, the Group considers write-off when it is determined that the debtor does not have sufficient resources or income to cover the principal and interest, and this write-off decision is made in accordance with internal regulations.

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

2.5.5 Offsetting of financial instruments

Financial assets and liabilities are offset and the net amount reported in the statements of financial position where there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or realize the assets and settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the Group or the counterparty.

2.6 Financial Liabilities

2.6.1 Classification and Measurement

The Group classifies non-derivative financial liabilities, except for financial liabilities at fair value through profit or loss, financial guarantee contracts and financial liabilities that arise when a transfer of financial assets does not qualify for derecognition, as financial liabilities carried at amortised cost and present as ‘deposits liabilities’, ‘borrowings’, and ‘other financial liabilities’ in the statement of financial position.

2.6.2 Derecognition

Financial liabilities are removed from the statement of financial position when it is extinguished; for example, when the obligation specified in the contract is discharged or canceled or expired or when the terms of an existing financial liability are substantially modified. The difference between the carrying amount of a financial liability extinguished or transferred to another party and the consideration paid (including any non-cash assets transferred or liabilities assumed) is recognized in profit or loss.

The Group’s financial liabilities at fair value through profit or loss are financial instruments held for trading. A financial liability is held for trading if it is incurred principally for the purpose of repurchasing in the near term. A derivative that is not a designated as hedging instruments and an embedded derivative that is separated are also classified as held for trading. Financial liabilities designated the financial liabilities at fair value through profit or loss is the structured financial liabilities containing embedded derivatives issued by the Group.

The changes in fair value of financial liabilities at fair value through profit or loss due to the change of credit risk is recognized as other comprehensive income(instead of profit and loss) and this other comprehensive income can not be transferred to profit and loss in subsequent events.

2.7 Derivative Financial Instruments

The Group enters into numerous derivative financial instrument contracts such as stock options, stock swaps, interest rate swaps and others for trading purposes or sale and issue of derivative combined securities. These derivative financial instruments are presented as derivative financial instruments within the financial statements irrespective of transaction purpose and subsequent measurement requirement.

Derivatives are initially recognized at fair value on the date a derivative contract enters into and are subsequently re-measured at their fair value. The changes of the fair value of derivatives financial instruments held for trading are recognized in profit or loss as ‘gain or loss on valuation and disposal of financial instrument’.

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

Fair value of derivative instrument traded in active market is a quoted price. In case of fair value of relatively simple derivative instruments such as options, interest rate or currency swaps and others is calculated using one or more valuation techniques like cash flow discount model, option pricing model which is based on observable data and appropriate considering the nature of objects.

Also, fair value of more complex derivative instrument is calculated using valuation techniques based on unobservable data in the market. The accuracy of the valuation techniques is approved by periodical review.

2.7.1 Day 1 Profit and Loss

Accordance with Korean IFRS, if there is no available price from active market and if the Group uses a valuation technique that uses unobservable valuation parameters from market for the fair value at initial recognition of financial instruments, 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 amortised by using the straight line method over the life of the financial instruments.

2.7.2 Credit risk adjustments

In case of exchange-traded derivative instrument, credit risk is not reflected on the fair value because exchange-traded derivative instrument is traded in public exchange, and it is not available to identify certain counterparties. Fair value of OTC derivative instrument only reflects credit risk.

2.7.3 Hedge accounting

The accounting treatment of changes of fair value for the derivatives varies as the character of hedging items and the purpose of hedging. The Group holds derivative contracts for the purpose of hedging the risk and the Group designates certain derivatives as hedging instruments to hedge the risk as follows.

(a)

Fair value hedge : a hedge of the exposure to changes in fair value of a recognised asset or liability or an unrecognised firm commitment

(b)

Cash flow hedge : a hedge of the exposure to variability in cash flows that is attributable to a particular risk associated with all, or a component of, the recognised asset or liability or a highly probable forecast transaction

(c)

Hedge of net investments in foreign operations

On initial designation of the hedge, the Group formally documents the relationship between the hedging instrument(s) and hedged items, including the risk management objectives and strategy in undertaking the hedge transaction, together with the methods that will be used to assess the effectiveness of the hedging relationship.

The fair value of derivatives for hedge is disclosed in note 37.

Changes in the fair value of a derivative hedging instrument designated as a fair value hedge are recognized in profit or loss. The gain or loss from remeasuring the hedging instrument at fair value and the gain or loss on the hedged item attributable to the hedged risk are recognized in profit or loss

If the hedge no longer meets the criteria for hedge accounting, the adjustment to the carrying amount of a hedged item is fully amortised to profit or loss by the maturity of the financial instrument using the effective interest method.

The accounting treatments of hedge of net investments in foreign operations are similar to those of cash flow hedge.

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

If hedging instruments qualify for a hedge of net investments in foreign operations, the effective portion of changes in fair value of hedging instrument is recognized in other comprehensive income or loss and the ineffective portion is recognized in profit or loss. The gain or loss on the hedging instrument relating to the effective portion of the hedge that has been recognized in other comprehensive income will be reclassified from other comprehensive income or loss to profit or loss as a reclassification adjustment on the disposal or partial disposal of the foreign operation.

2.8 Property and Equipment

All property and equipment except for land are recognized 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 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.

Land is measured at fair value on the basis of the valuation performed by an independent valuer. Revaluations are performed with sufficient regularity to ensure that the carrying amount does not differ materially from that which would be determined using fair value at the end of the reporting period.

If an asset’s carrying amount is increased as a result of a revaluation, the increase is recognized in other comprehensive income and the amount is accumulated in equity under the heading of revaluation surplus after netting deferred tax. However, the increase is recognized in profit or loss to the extent that it reverses a revaluation decrease of the same asset previously recognized in profit or loss. If an asset’s carrying amount is decreased as a result of a revaluation, the decrease is recognized in profit or loss. However, the decrease is recognized in other comprehensive income to the extent of any credit balance existing in the revaluation surplus in respect of that asset. The decrease recognized in other comprehensive income reduces the amount accumulated in equity under the heading of revaluation surplus. The revaluation surplus included in equity in respect of an item of property and equipment is transferred directly to retained earnings when the asset is derecognized.

Depreciation of all property and equipment, except for land, is calculated using the following method to allocate their cost or revalued amounts, net of their residual values, over their estimated useful lives as follows:


Property and equipment	Estimated useful lives	Depreciation method
Buildings	40 years	Straight-line method
Vehicles	4 years	Straight-line method
Furniture and equipment	4 years	Straight-line method
Other	4 years	Straight-line method
Right-of-use assets	1~10 years (initial date of the contract entered into ~ maturity date)	Straight-line method

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

2.9 Investment Property

Property held to earn rentals or for capital appreciation or both is classified as investment property. Investment property is measured initially at its cost. After recognition as an asset, investment property is carried at cost less accumulated depreciation and impairment losses. Investment property, except for land, is depreciated using the straight-line method over their useful lives of 40 years.

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

2.10 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, comprise software and membership rights, and are amortised using the straight-line method with no residual value over following estimated useful economic life since the asset is available for use. However, goodwill and membership rights are not amortised by considering their useful life as indefinite, because there is no expectable limit to period for use.


Intangible assets	Estimated useful lives	Amortization method
Development costs	4 years	Straight-line method
Software	4 years	Straight-line method

The amortization period and the amortization method for intangible assets with a finite useful life are reviewed at the end of each financial year. The management reviews the useful life of intangible assets that is not being amortised each period to determine whether events and circumstances continue to support an indefinite useful life. If management judges that previous estimates should be adjusted, the change is accounted for as a change in an accounting estimate.

2.11 Impairment of Non-financial Assets

Goodwill or intangible assets with indefinite useful lives are not subject to amortization and are tested annually for impairment. Assets that are subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. Non-financial assets, other than goodwill, that suffered impairment are reviewed for possible reversal of the impairment at the end of each reporting period.

2.12 Lease

Lease income from operating leases where the Group is a lessor is recognized 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.

The Group should assess whether a contract is, or contains a lease at the date the contract entered into and the initial application date under Korean IFRS No.1116. But the Group may elect not to reassess whether a contract is, or contains a lease for the contract entered into before the transition date by applying practical expedient permitted by Korean IFRS No.1116. The Group has gone through all the contract to assess whether the contract is, or contains, a lease at the date the contract entered into after the date of initial application.

A lessee is required to recognize a right-of-use asset (lease asset) 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 on a present value basis.

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

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 payment that are based 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 can not be readily determined, the lessee’s incremental borrowing rate is used, being the rate that the lessee would have to pay to borrow the funds necessary to obtain an asset of similar value to the right-of-use asset in a similar economic environment with similar terms and conditions.

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

•

The amount of the initial measurement of 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, short-term lease (lease that, at the commencement date, has a lease term of 12 months or less) and lease of low-value assets (For example, underlying leased asset under $ 5,000) are permitted to elect exceptional conditions.

The right-of-use asset is depreciated over the shorter of the asset’s useful life and the lease term.

Related to sale and leaseback, the Group (seller-lessee) is required to apply the 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. However, the Group shall not reassess sale and leaseback transactions entered into before the date of initial application.

Large number of lease contracts held by the Group have extension option and termination option. These conditions are generally used for maximizing the flexibility of lease operation in a view of managing the contracts. Extension option or termination option included in the lease contracts are generally owned by the Group, not lessor. The Group re-evaluated the lease term of the lease contracts by taking into account the contract type, operation plan for branch offices, and costs related to lease termination . As a result, no significant change in the existing lease term has occurred.

2.13 Provisions

Provisions are measured at the present value of the expenditures expected to be required to settle the obligation and the increase in the provision due to passage of time is recognized as interest expense.

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

2.14 Financial Guarantee Contracts

Financial guarantees contracts provided by the Group are initially measured at fair value on the date the guarantee was given. Subsequent to initial recognition, the Group’s liabilities under such guarantees are measured at the higher of the amounts below and recognized as ‘other financial liabilities’:

•

Loss allowance in accordance with Korean IFRS No.1109, ‘Financial Instruments’

•

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

2.15 Revenue Recognition

The Group recognizes revenues in accordance with the following five-step revenue recognition standard (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.

2.16 Employee Benefits

2.16.1 Retirement benefit liabilities: Defined benefit plans and Defined contribution plans

The Group has both defined benefit and defined contribution plans. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. The contributions are recognized as employee benefit expenses when an employee has rendered service. A defined benefit plan is a pension plan that is not a defined contribution plan.

Typically defined benefit plans define an amount of pension benefit that an employee will receive on retirement, usually dependent on one or more factors such as age, years of service and compensation. The liability recognized in the statement of financial position in respect of defined benefit pension plans is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows using interest rates of high-quality corporate bonds that have terms to maturity approximating to the terms of the related pension obligation. The remeasurements of the net defined benefit liability are recognized in other comprehensive income.

If any plan amendments, curtailments, or settlements occur, past service costs or any gains or losses on settlement are recognized as profit or loss for the year.

2.16.2 Short-term employee benefits

Short-term employee benefits, which are expected to be settled wholly before 12 months after the end of the annual reporting period in which the employees render the service, are recognized in profit or loss at the undiscounted amount of short-term employee benefits expected to be paid in exchange for that service.

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

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

2.16.3 Share-based payment

The Group is under share-based payment arrangements that grant shares to the executives of the Group. When the arrangements are exercised, the Group provides share or cash equal to the monetary value of the share.

The Group measures the services acquired and the liability incurred at fair value, and the fair value is recognized as expense and accrued expenses over the vesting period. 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.

2.17 Income Tax Expenses

Income tax expense comprises current income tax and deferred income tax and is recognized in profit or loss for the year, except to the extent that the tax arises from (a) a transaction or event which is recognized either in other comprehensive income or directly in equity and (b) a business combination.

2.17.1 Current income tax

Current income tax is the amount of income taxes 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 expenses that is not deductible in determining taxable profit (tax loss). Current income tax liabilities (assets) for the current and prior periods are measured at the amount expected to be paid to (recovered from) the taxation authorities, using the tax rates (and tax laws) 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 set off the recognized amounts and (b) intends to settle on a net basis.

2.17.2 Deferred income tax

Deferred income tax is recognized, using the asset-liability method, on temporary differences arising between the tax bases 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 is not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting profit nor taxable profit or loss.

Deferred income tax is recognized on temporary differences arising from investments in subsidiaries and associates, except where the timing of the reversal of the temporary difference is controlled by the Group 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.

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

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.

Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred income taxes assets and liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities where there is an intention to settle the balances on a net basis.

Current income tax and deferred income tax are included in the calculation of income tax expense. Income taxes related to prior period are included in current income tax.

Deferred income taxes, recognized directly in equity or arisen from business combination, are directly deducted from equity or goodwill.

2.17.3 Tax Uncertainties

Due to the complexity of transactions and differences in tax law interpretation, tax policies adopted by the Group may present tax uncertainties. These tax uncertainties arise in tax correction claims, refund lawsuits for tax surcharges by the tax authorities, tax audits and so on. The Group accounts for such tax uncertainties in accordance with Korean IFRS No. 1012 and Korean IFRS No. 2123.

In other words, if the Group has paid an amount due to an additional tax assessment by the tax authorities but the likelihood of a future refund is high, it recognizes the amount as a corporate tax asset. Conversely, amounts expected to be paid as a result of a tax audit or similar investigation are recognized as a corporate tax liability. However, penalties and interest on refunds are regarded, based on their economic substance, as interest or fines, and are accounted for in accordance with Korean IFRS 1037.

2.18 Operating Segment Reporting

Operating segments are components of the Group, about which separate internal reporting information is evaluated regularly by the chief operating decision makers including Board of Directors in deciding how to allocate resources and to assess performance. Each segment is a strategic business unit that offers different products and services, and is managed separately because each business has different risks and opportunities, different technology required and marketing strategies.

Segment information includes the items which are directly attributable and reasonably allocated to the segment.

2.19 Other Receivables and Payables Related to Brokerage Transactions

Regarding customer brokerage transactions, the Group recognizes the receivable from and payable to the Korea Exchange (Clearing and settlement organization) and customers in total amounts, which the Group recognizes as other financial assets and other financial liabilities. The Group offsets the receivable and payable that arise between Korea Exchange and the Group within the same day.

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

2.20 Business Combinations

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 values on the consolidated financial statements of the ultimate parent entity. In addition, the difference between the sum of book values of the assets and liabilities transferred and accumulated other comprehensive income; and the consideration paid is recognized as capital surplus.

2.21 Approval of Issuance of the Financial Statements

The issuance of the December 31, 2025 consolidated financial statements of the Group was approved by the Board of Directors on February 4, 2026, which is subject to change with approval at the annual shareholder’s meeting.

3. Critical Accounting Estimates and Assumptions

The preparation of financial statements requires the Group to make estimates and assumptions concerning the future. Management also needs to exercise judgement in applying the Group’s accounting policies. Estimates and assumptions are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. As the resulting accounting estimates will, by definition, seldom equal the related actual results, it can contain a significant risk of causing a material adjustment.

The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below. Additional information of significant judgment and assumptions of certain items are included in relevant notes.

3.1 Income taxes

The Group recorded, based on its best estimate, current taxes and deferred taxes that the Group will be liable in the future for the operating results at the end of the reporting period. However, the final tax outcome in the future may be different from the amounts that were initially recorded. Such differences will impact the current and deferred income tax assets and liabilities in the period in which the final tax outcome is determined.

If certain portion of the taxable income is not used for investments or increase in wages in accordance with the Special Taxation for Facilitation of Investment and Mutually-Beneficial Cooperation, the Group is liable to pay additional income tax calculated based on the tax law. Accordingly, the measurement of current and deferred income tax is affected by the tax effects from such tax law. As the Group’s income tax is dependent on the investments and increase in wages, there exists uncertainty with regard to measuring the final tax effects.

3.2 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 and assumptions in price determination and other risks.

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

As described in Note 2.5, ‘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.

3.3 Impairment of financial assets

In accordance of Korean IFRS No.1109, the provision for impairment for financial assets are based on assumptions about risk of default and expected loss rates. The Group uses judgment in making these assumptions and selecting the inputs to the impairment calculation based on the Group’s past history, existing market conditions as well as forward-looking estimates at the end of each reporting period (Note 2.5).

3.4 Measurement of defined benefit obligation

The present value of the defined benefit liability depends on a number of factors that are determined on an actuarial basis using a number of assumptions. The assumptions used in determining the net cost (income) for pensions include the discount rate. Any changes in these assumptions will impact the carrying amount of the defined benefit liability. The Group determines the appropriate discount rate at the end of the reporting period. This is the interest rate that is used to determine the present value of estimated future cash outflows expected to be required to settle the defined benefit liability. In determining the appropriate discount rate, the Group considers the interest rates of high-quality corporate bonds that are denominated in the currency in which the pension benefits will be paid, and that have terms to maturity approximating to the terms of the related pension liability. Other key assumptions for defined benefit liability are based in part on current market conditions.

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

4. Segment Information

4.1 Types of services from which each reportable segment derives its revenues

Management of the Group decides operating segment based on the information, which is to be reported to the Group’s chief executive officer, in order to allocate resources to the segment and evaluate performance of the segment. The Group’s operating segments consist of brokerage and wealth management, investment banking, trading and other business.

In accordance with Korean IFRS No.1108, reporting segments of the Group by type of services categories are as follows:


Reporting segment		Main business activities
Brokerage and wealth management		Sales and services relating to wealth management and brokerage provided to individuals, corporations and institutional investors

Investment banking		Underwriting and advisory services related to bond issuance, structured finance, initial public offering, and mergers and acquisition

Trading		Trading of securities and derivatives, and proprietary trading

Others		Other services and support services

4.2 Revenue and income of segment reporting

Financial information by operating segment for the years ended December 31, 2025 and 2024, are as follows:


(in thousands of Korean won)	2025
	Operating income		Operating expense		Operating profit		Non-operating income(expense)			Profit(loss) before income tax expense(income)
Brokerage and wealth management		7,811,177,641		7,267,789,965		543,387,676		(16,795,662	)		526,592,014
Investment banking		1,204,956,919		1,088,728,368		116,228,551		4,719,939			120,948,490
Trading		4,366,108,310		4,323,640,622		42,467,688		(4,838,649	)		37,629,039
Others		765,982,676		556,495,589		209,487,087		12,235,081			221,722,168

		14,148,225,546		13,236,654,544		911,571,002		(4,679,291	)		906,891,711


(in thousands of Korean won)	2024
	Operating income		Operating expense		Operating profit		Non-operating income(expense)			Profit(loss) before income tax expense(income)
Brokerage and wealth management		5,125,756,091		4,796,445,268		329,310,823		(58,644,234	)		270,666,589
Investment banking		1,170,072,565		983,069,680		187,002,885		36,383,312			223,386,197
Trading		3,929,884,607		3,893,895,155		35,989,452		3,518,269			39,507,721
Others		606,317,462		377,834,145		228,483,317		(13,410,811	)		215,072,506

		10,832,030,725		10,051,244,248		780,786,477		(32,153,464	)		748,633,013

The above reported operating income is generated from external customers and inter-segment transactions, and expense includes expenses that can be directly attributed or reasonably allocated to each segment including internal interests. Segment profit represents the profit earned by each segment, reported to the chief executive officer to determine the allocation of resources and to measure the respective segments’ performance.

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

4.3 Assets and liabilities of segments

Total assets and liabilities by each segment as at December 31, 2025 and 2024, are as follows:


	2025
(in thousands of Korean won)	Total assets		Total liabilities
Brokerage and wealth management		12,611,238,694		13,577,838,823
Investment banking		6,370,430,981		1,926,144,042
Trading		28,087,886,043		11,481,948,171
Others		29,405,334,618		42,592,224,059

		76,474,890,336		69,578,155,095


	2024
(in thousands of Korean won)	Total assets		Total liabilities
Brokerage and wealth management		7,564,847,592		8,311,185,348
Investment banking		6,750,342,725		2,777,070,185
Trading		26,389,900,152		11,811,775,837
Others		22,685,444,884		33,602,174,307

		63,390,535,353		56,502,205,677

4.4 Information on principal customers

No single customer contributed 10% or more to the Group’s revenue for the years ended December 31, 2025 and 2024.

5. Cash and Deposits

The details of cash and deposits as at December 31, 2025 and 2024, are as follows:


(in thousands of Korean won)	2025			2024
Cash and cash equivalents
Cash on hand		298			256
Cash in foreign currency		2,472			3,006
Demand deposits		165,866,019			466,097,989
Checking deposit		16,244,316			12,908,712
Foreign currency deposits		184,852,869			192,459,262
Certificates of deposit		17,218,800			16,170,000
MMDA		248,670,778			88,351,061
Accommodation notes		—			7,096,548

		632,855,552			783,086,834

Deposits
Deposits for securities subscription		21,538,625			1,083,733
Reserve for claims of customers’ deposits		1,506,899,724			802,442,695
Guarantee deposits for securities lending and borrowing		389,805,311			46,752,791
Deposits for exchange-traded derivatives		472,541,683			584,738,144
Guarantee deposits for KSFC trading		1,294,281			—
Long-term deposits		155,081,447			109,213,322
Restricted due from financial institutes		42,000			39,000
Others		927,570,303			995,886,495
Allowances for credit losses of deposits		(1,059,769	)		(738,213	)

		3,473,713,605			2,539,417,967

		4,106,569,157			3,322,504,801

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

Restricted deposits as at December 31, 2025 and 2024, are as follows:


(in thousands of Korean won)	2025		2024
Deposits for securities subscription ¹		21,538,625		1,083,733
Reserve for claims of customers’ deposits²		1,506,899,724		802,442,695
Guarantee deposits for securities lending and borrowing³		389,805,311		46,752,791
Deposits for exchange-traded derivatives ⁴		472,541,683		584,738,144
Guarantee deposits for KSFC trading⁵		1,294,281		—
Long-term deposits ⁶		69,000,000		82,361,293
Restricted due from financial institutes⁷		42,000		39,000
Others ⁸		927,570,303		995,886,495

		3,388,691,927		2,513,304,151

Subscription deposits are subscription margin of investors and the Group that are separately deposited at Korea Securities Finance Corporation(KSFC) or other relevant financial institutions until due date for payment for the subscription of the newly issued or sold securities in accordance with the provisions of Article 4-44 of the Regulation on Financial Investment Business.

²	The reserve for claims of customers’ deposits is deposited separately in a form of trust in KSFC to meet the demands of investors, such as return of deposit and others, in accordance with Article 74 of the Financial Investment Services and Capital Markets Act.

³	Deposited in Korea Securities Depository to guarantee for securities lending and borrowing.

⁴	The deposits for exchange-traded derivatives that the investors and the Group pay for foreign futures option trading to KEB Hana Bank and Forex Dealer Member.

⁵	In the case of an investor’s loan transaction, a certain portion of the price of securities sold is deposited at KSFC as margin.

⁶	Pledged deposits provided for securities lending and borrowing, repurchase agreements between institutions and retail payment through investment & securities companies are included.

⁷	Guarantee deposits for checking accounts

⁸	Deposits in foreign currency and others consist of the margin accounts for trading financial instruments in foreign markets and deposits to court.

Changes in allowances for credit losses of deposits for the years ended December 31, 2025 and 2024, are as follows:


	2025
	12-month expected credit losses			Lifetime expected credit losses
(in thousands of Korean won)	12-month expected credit losses			Non-impaired		Impaired
Beginning		738,213			—		—
Provision		321,556			—		—

		1,059,769			—		—


	2024
	12-month expected credit losses			Lifetime expected credit losses
(in thousands of Korean won)	12-month expected credit losses			Non-impaired		Impaired
Beginning		290,229			—		—
Provision		448,028			—		—
Other changes (foreign exchange rate, etc.)		(44	)		—		—

		738,213			—		—

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

6. Financial Instruments at FVTPL

The details of financial instruments at FVTPL as at December 31, 2025 and 2024, are as follows:


(in thousands of Korean won)	Financial Assets at FVTPL				Financial Liabilities at FVTPL
(in thousands of Korean won)	2025		2024		2025		2024
Financial assets required to be mandatorily measured at FVTPL		42,787,453,811		37,098,018,781		2,910,712,724		2,558,520,223
Financial assets designated at FVTPL		—		—		7,996,513,415		8,010,047,059

		42,787,453,811		37,098,018,781		10,907,226,139		10,568,567,282

6.1 Financial assets required to be mandatorily measured at FVTPL

The details of financial assets required to be mandatorily measured at FVTPL as at December 31, 2025 and 2024, are as follows:


(in thousands of Korean won)	2025		2024
Deposits
Reserve for claims of customers’ deposits (trust)¹		6,291,667,379		4,458,853,144
Equity instruments
Stocks		4,090,047,147		1,629,488,642
Debt instruments
Government and local government bonds		2,931,969,940		4,038,123,584
Special bonds		4,210,324,688		4,394,107,831
Corporate bonds		6,824,486,015		5,887,629,630
Corporate commercial papers		5,369,662,486		5,668,511,190
Asset-backed short-term bonds		1,124,792,053		1,731,958,269
Hybrid bond with security-like features		328,391,430		267,899,220
Investment in partnerships		717,130,999		621,369,479
Collective investment securities		6,587,303,623		4,889,259,964
Hybrid stock with bond-like features		137,557,530		191,300,842
Loans
Loan receivables		960,390,430		937,623,364
Derivative linked securities
Equity-linked securities		80,970,708		10,897,742
Other derivative linked securities		1,021,084,300		783,440,520
Other OTC derivative combined contract		143,046,855		102,732,731
Securities in foreign currency
Stocks in foreign currency		50,592,275		56,718,799
Bonds in foreign currency		1,243,360,934		841,110,016
Investment in partnerships in foreign currency		49,909,886		52,692,465
Collective investment securities in foreign currency		231,861,157		148,454,235
Collective fund for default loss		96,241,957		82,900,562
Hybrid bonds		293,249,242		271,689,060
Exchange traded notes		134,273		—
Other short-term securities held for sale		3,278,504		31,257,492

		42,787,453,811		37,098,018,781

The reserve for claims of customers’ deposits is restricted to use because this reserve is deposited separately in a form of trust in KSFC to meet the demands of investors, such as return of deposit and others, in accordance with Article 74 of the Financial Investment Services and Capital Markets Act.

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

Details of securities sold which are classified as financial liabilities at FVTPL as at December 31, 2025 and 2024, are as follows:


(in thousands of Korean won)	2025		2024
Equity Securities
Stocks		1,640,199,761		798,188,133
Debt Securities
Government and local government bonds		1,243,927,993		1,758,937,852
Collective investment securities		26,584,970		1,394,238

		2,910,712,724		2,558,520,223

The details of financial assets pledged as collateral as at December 31, 2025 and 2024, are as follows:


(in thousands of Korean won)	Description¹	2025	2024	Security right holder
Financial assets at FVTPL	Guarantee deposits for lending and borrowing securities and bonds	11,148,996,178	9,908,290,516	Korea Securities Depository, KSFC, etc.
	Margin required and guarantee deposits for derivatives trading	1,741,587,209	1,591,262,017	Korea Stock Exchange, etc.
	Guarantee deposits for loan	105,943,750	—	Kookmin Bank
	Guarantee deposits for reverse repurchase agreements	4,148,851,974	4,232,134,843	Customer, Institution
Financial assets at FVOCI	Guarantee deposits for lending and borrowing securities and bonds	4,041,764,331	2,510,367,880	Korea Securities Depository, KSFC, etc.
	Guarantee deposits for derivatives trading	106,035,567	183,121,174	Korea Securities Depository, etc.
	Guarantee deposits for reverse repurchase agreements	2,601,915,338	1,811,592,215	Customer, Institution

		23,895,094,347	20,236,768,645

¹	As at December 31, 2025 and 2024, the accrued interests related to debt securities provided as collateral of W235,903 million and W406,426 million, respectively, are excluded.

The Group provides W10,485,363 million and W8,027,229 million of its borrowing securities held as collateral to KSFC and others as at December 31, 2025 and 2024, respectively.

As at December 31, 2025 and 2024, the fair values of collaterals sold or repledged as collateral regardless of default are as follows:


(in thousands of Korean won)	Securities
(in thousands of Korean won)	2025		2024
Fair value of collateral held		2,034,440,723		2,255,447,484
Fair value of collaterals sold or re-provided as collateral		—		—

		2,034,440,723		2,255,447,484

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

6.2 Financial liabilities designated at FVTPL

The details of financial liabilities designated at FVTPL as at December 31, 2025 and 2024, are as follows:


(in thousands of Korean won)	2025		2024

Derivative linked securities
Equity-linked securities		3,959,492,400		4,437,103,116
Other derivative linked securities		2,440,972,492		2,062,512,677
Other OTC derivative combined contract		1,088,148,738		1,209,941,532
Exchange traded notes		507,899,785		300,489,734

		7,996,513,415		8,010,047,059

The differences between the contractual value to be paid at maturity and the carrying amount of financial liabilities at FVTPL as at December 31, 2025 and 2024, are as follows:


(in thousands of Korean won)	2025			2024

Contractual value to be paid at maturity		7,909,016,857			7,947,235,520
Carrying amount		7,996,513,415			8,010,047,059

Differences		(87,496,558	)		(62,811,539	)

Accumulated changes in fair value of financial liabilities at FVTPL due to the change of credit risk as at December 31, 2025 and 2024, are as follows:


	Other comprehensive income recognized from changes of fair value due to the change of credit risk (before tax) ¹
(in thousands of Korean won)	2025		2024
Beginning of the year		23,501,476		16,008,372
Change of fair value		4,805,676		7,493,104

End of the year		28,307,152		23,501,476

¹	The Group assessed OCI based on the probability of default corresponding to the Group’s credit rating and loss given default. The amount is before tax.

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

7. Derivatives and Hedge Accounting

Derivatives owned by the Group as at December 31, 2025 and 2024, are as follows:


	2025
	Assets				Liabilities
(in thousands of Korean won)	Hedging		Trading		Hedging		Trading		Unsettled amount
Exchange-traded derivatives
Interest rate:
Futures		—		458,350		—		1,340,185		2,711,107,584
Equity:
Futures		—		395,800		—		6,880,804		3,552,399,956
Purchase options		—		164,620,094		—		—		471,966,622
Written options		—		—		—		119,129,766		885,215,546
Currency:
Futures		—		727,819		—		19,982		667,149,581
Goods:
Futures		—		1,055,889		—		1,949,104		81,630,722

		—		167,257,952		—		129,319,841		8,369,470,011

OTC derivatives
Interest rate:
Forwards		—		831,678,574		—		789,179,537		24,953,579,400
Swaps		—		170,399,971		—		288,078,925		81,372,320,305
Options		—		9,462,701		—		12,711,975		450,000,000
Currency:
Forwards		—		102,929,263		2,911,200		187,684,256		10,916,998,422
Swaps		—		1,624,649		—		897,916		307,834,412
Options		—		2,739,390		—		—		143,490,000
Equity:
Swaps		—		237,065,442		—		379,735,597		6,120,873,935
Purchase options		—		41,840,388		—		—		444,767,350
Written options		—		—		—		42,262,638		450,988,980
Credit:
Swaps		—		35,971,365		—		26,470,050		5,122,155,324
Goods:
Swaps		—		10,571,788		—		10,185,126		568,777,593
Options		—		3,071,634		—		3,109,343		101,737,280
Others:
Swaps		—		—		—		215,776,534		729,940,931

		—		1,447,355,165		2,911,200		1,956,091,897		131,683,463,932

		—		1,614,613,117		2,911,200		2,085,411,738		140,052,933,943

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024


	2024
	Assets				Liabilities
(in thousands of Korean won)	Hedging		Trading		Hedging		Trading		Unsettled amount
Exchange-traded derivatives
Interest rate:
Futures		—		1,178,439		—		5,406,671		4,179,414,373
Equity:
Futures		—		3,260,046		—		7,962,965		2,140,518,324
Purchase options		—		9,946,986		—		—		264,716,897
Written options		—		—		—		165,495,252		1,305,007,298
Currency:
Futures		—		1,694,383		—		234,401		467,353,785
Goods:
Futures		—		1,191,265		—		1,012,175		42,764,421

				17,271,119		—		180,111,464		8,399,775,098

OTC derivatives
Interest rate:
Forwards		—		697,806,221		—		674,883,353		17,627,246,000
Swaps		—		118,669,376		—		312,957,040		122,722,303,442
Options		—		10,235,246		—		12,676,965		450,100,000
Currency:
Forwards		—		182,379,315		4,309,200		229,896,555		8,112,241,494
Swaps		—		28,173,803		—		28,835,713		682,131,009
Options		—		4,415,787		—		6,151		147,000,000
Equity:
Swaps		—		278,277,987		—		156,824,783		4,963,174,354
Purchase options		—		4,396,416		—		—		471,018,000
Written options		—		—		—		5,872,788		483,738,001
Credit:
Swaps		—		37,123,089		—		27,397,061		4,411,630,000
Goods:
Swaps		—		12,389,787		—		11,780,566		1,297,182,950
Options		—		3,018,458		—		3,130,137		292,290,390
Others:
Swaps		—		47,097		—		275,542,878		796,712,171

				1,376,932,582		4,309,200		1,739,803,990		162,456,767,811

				1,394,203,701		4,309,200		1,919,915,454		170,856,542,909

The Group entered into the derivative contracts for hedging foreign currency risk of foreign operations and applied hedge of net investments in foreign operations accounting.

Gain or loss on hedge of net investments in foreign operations for the years ended December 31, 2025 and 2024, are as follows:


(in thousands of Korean won)	2025		2024
Gain(loss) on the hedging instrument		6,780,762		(32,456,592	)
Effective portion of changes in fair value of hedging (other comprehensive income)		6,780,762		(32,456,592	)
Ineffective portion of changes in fair value of hedging (profit or loss)		—		—

The effective portion of changes in fair value of hedge of net investments in foreign operations recognized as other comprehensive income for the years ended December 31, 2025 and 2024, are as follows:


(in thousands of Korean won)	2025			2024
Other comprehensive income		6,780,762			(32,456,592	)
Reclassification form other comprehensive income to net income		758,100			3,013,920
Tax effect		(1,498,693	)		7,772,865

Other comprehensive income-net of tax		6,040,169			(21,669,807	)

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

The average price related to hedge of net investments in foreign operations as at December 31, 2025 and 2024, are as follows:


(in thousands of Korean won)	2025
	The nominal amount of the hedging instrument		Average price (KRW/USD, Korean won)		Average price (KRW/GBP, Korean won)		Average price (KRW/EUR, Korean won)
1 year		242,498,100		1,173.81		—		—
2 year		—		—		—		—
3 year		—		—		—		—
Over 3 year		—		—		—		—

		242,498,100		1,173.81		—		—


(in thousands of Korean won)	2024
	The nominal amount of the hedging instrument		Average price (KRW/USD, Korean won)		Average price (KRW/GBP, Korean won)		Average price (KRW/EUR, Korean won)
1 year		15,876,000		1,071.00		—		—
2 year		236,670,000		1,178.92		—		—
3 year		—		—		—		—
Over 3 year		—		—		—		—

		252,546,000		1,172.13		—		—

8. Financial Assets at FVOCI

The details of financial assets at FVOCI as at December 31, 2025 and 2024, are as follows:


(in thousands of Korean won)	2025		2024
Equity instruments
Stocks ¹		555,227,795		472,013,720
Investment in partnerships		1,200,000		1,200,000
Other		941,617,362		879,977,297
Debt instruments
Government and municipal government bonds		113,091,530		70,709,895
Special bonds		2,331,033,103		1,821,452,212
Corporate bonds		4,657,305,415		2,595,239,175
Securities in foreign currency
Debt instruments		860,204,442		641,121,645
Stocks		2,407,680		2,407,680
Investment in partnerships		1,657,090		1,169,782

		9,463,744,417		6,485,291,406

¹	Equity investment on Korea Stock Exchange and other relative institutions

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

Changes in gains and losses on valuation of financial assets at FVOCI (before tax) for the years ended December 31, 2025 and 2024, are as follows:


(in thousands of Korean won)	2025
(in thousands of Korean won)	Beginning balance			Valuation¹			Disposal / Transfer			Ending balance
Stocks		370,452,931			102,445,443			1,586,092			474,484,466
Government and local government bonds		(447,623	)		(8,018,955	)		447,623			(8,018,955	)
Special bonds		9,273,877			(14,240,022	)		(5,205,743	)		(10,171,888	)
Corporate bonds		13,629,179			(21,429,749	)		(7,634,040	)		(15,434,610	)
Securities in foreign currency		(2,120,577	)		3,583,955			420,107			1,883,485
Other securities in Korean won		10,515,554			(8,443,100	)		1,094,085			3,166,539

		401,303,341			53,897,572			(9,291,876	)		445,909,037

¹	Provision for credit loss of debt instruments at FVOCI of W1,746 million is excluded.


(in thousands of Korean won)	2024
(in thousands of Korean won)	Beginning balance			Valuation¹			Disposal / Transfer			Ending balance
Stocks		386,171,268			(15,718,337	)		—			370,452,931
Government and local government bonds		57,031			(447,623	)		(57,031	)		(447,623	)
Special bonds		3,686,348			7,970,335			(2,382,806	)		9,273,877
Corporate bonds		6,816,506			8,237,295			(1,424,622	)		13,629,179
Securities in foreign currency		(1,426,312	)		(832,697	)		138,432			(2,120,577	)
Other securities in Korean won		(1,588,431	)		14,095,998			(1,992,013	)		10,515,554

		393,716,410			13,304,971			(5,718,040	)		401,303,341

¹	Provision for credit loss of debt instruments at FVOCI of W215 million is excluded.

The derecognized equity investments at FVOCI for the year ended December 31, 2025 and 2024, are as follows:


(in thousands of Korean won)	2025		2024
Marketable securities		20,817,460		—
Other quity investments at FVOCI		136,243,062		151,937,226

		157,060,522		151,937,226

The dividend income from equity investments at FVOCI for the years ended December 31, 2025 and 2024, are as follows;


(in thousands of Korean won)	2025				2024
(in thousands of Korean won)	Derecognised		Held at the end of reporting period		Derecognised		Held at the end of reporting period
Equity investments at FVOCI
Marketable securities		1,610,875		2,107,287		—		—
Non marketable securities		—		13,569,397		—		14,628,399
Other equity investments		143,647		45,823,737		698,774		31,745,544

		1,754,522		61,500,421		698,774		46,373,943

The Group recognized provision for credit loss of debt instruments at FVOCI amount (before tax) to W3,489 million and W1,743 million, as at December 31, 2025 and 2024, respectively.

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

9. Investments in Associates

Investments in associates as at December 31, 2025 and 2024, are as follows:


(in thousands of Korean won)				Percentage of ownership (%)		2025						2024
	Location	Industry	Closing month	Percentage of ownership (%)		Acquisition cost		Net asset amount		Book amount		Acquisition cost		Net asset amount		Book amount
KB Special Purpose Acquisition Company No.21	Korea	SPAC	—		—		—		—		—		10,000		20,894		20,894
KB Special Purpose Acquisition Company No.25 ¹	Korea	SPAC	November		0.12		5,000		10,165		10,165		5,000		9,965		9,965
KB Special Purpose Acquisition Company No.26	Korea	SPAC	—		—		—		—		—		5,000		9,836		9,836
KB Special Purpose Acquisition Company No.27 ¹	Korea	SPAC	November		0.04		5,000		10,460		10,460		5,000		10,236		10,236
KB Special Purpose Acquisition Company No.28	Korea	SPAC	—		—		—		—		—		5,000		9,645		9,645
KB Special Purpose Acquisition Company No.29 ¹	Korea	SPAC	November		0.16		10,000		20,367		20,367		10,000		19,982		19,982
KB Special Purpose Acquisition Company No.30 ¹	Korea	SPAC	November		0.19		10,000		19,930		19,930		10,000		19,518		19,518
KB Special Purpose Acquisition Company No.31 ¹	Korea	SPAC	November		0.16		10,000		20,046		20,046		10,000		22,618		22,618
KB Special Purpose Acquisition Company No.32 ¹	Korea	SPAC	November		0.16		10,000		19,599		19,599		—		—		—
KB Special Purpose Acquisition Company No.33 ¹	Korea	SPAC	November		1.08		160,000		169,648		169,648		—		—		—
KB New Paradigm Agriculture Venture Fund	Korea	Investment	December		25.00		900,000		589,976		589,976		1,275,000		1,291,253		1,291,253
KB KONEX Market Vitalization Fund	Korea	Investment	—		—		—		—		—		540,000		1,928,317		1,928,317
KB-KDBC New Technology Business Investment Fund	Korea	Investment	—		—		—		—		—		1,500,000		2,601,286		2,601,286
KBTS Technology Venture Private Equity Fund ¹	Korea	Investment	December		16.00		1,888,000		2,724,603		2,724,603		1,888,000		3,179,737		3,179,737
KB-SJ Tourism Venture Fund ¹	Korea	Investment	December		18.52		380,000		1,518,202		1,518,201		570,000		1,780,925		1,780,925
KB Shinjasanaubo Fund ¹	Korea	Investment	December		14.67		1,804,000		681,084		681,084		1,804,000		1,031,767		1,031,767
UNION Media Commerce Fund	Korea	Investment	December		28.99		1,000,000		940,711		940,711		1,000,000		945,674		945,674
KB SPROTT Renewable Private Equity Fund I	Korea	Investment	December		26.69		3,682,135		822,106		822,106		3,682,135		3,052,067		3,052,067

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024


KB-Stonebridge Secondary Private Equity Fund ¹	Korea	Investment	December	4.16	3,371,606	3,430,784	3,430,784	4,620,046	4,819,055	4,819,055
KB-SP Private Equity Fund IV	Korea	Investment	—	—	—	—	—	6,100,000	3,995,113	3,995,113
KB-UTC Inno-Tech Venture Fund ¹	Korea	Investment	December	14.76	6,262,500	2,466,131	2,466,131	6,262,500	3,910,530	3,910,530
KB-NAU Special Situation Corporate Restructuring Private Equity Fund ¹	Korea	Investment	December	6.60	5,478,329	9,969,640	9,969,640	5,379,144	8,021,543	8,021,543
KB-KTB Technology Venture Fund ¹	Korea	Investment	December	18.18	10,000,000	8,780,181	8,780,181	10,000,000	9,088,456	9,088,456
KB Bio Global Expansion Private Equity Fund No.1	Korea	Investment	December	39.47	15,000,000	17,288,503	17,288,503	15,000,000	17,870,374	17,870,374
KB Digital Platform Fund ¹	Korea	Investment	December	16.67	38,000,000	51,887,076	51,887,076	28,000,000	28,288,502	28,288,502
KB-SOLIDUS Healthcare Investment Fund ¹	Korea	Investment	December	5.10	5,000,000	4,878,432	4,878,432	3,683,333	3,484,892	3,484,892
G Payment Joint Stock Company	Vietnam	Electrinic payment & settlement agency	December	20.72	5,870,702	1,910,047	2,385,554	5,870,702	1,504,194	2,520,780
KB-GeneN Medical Venture Fund 1	Korea	Investment	December	22.52	2,000,000	1,838,386	1,838,386	2,000,000	1,880,230	1,880,230
DA-Friend Investment Fund II	Korea	Investment	December	27.06	987,633	901,665	901,665	987,633	906,175	906,175
Cornerstone Pentastone IV Fund	Korea	Investment	December	21.52	817,742	763,413	763,413	817,742	763,949	763,949
JS Private Equity Fund III	Korea	Investment	December	20.48	195,773	410,733	410,733	945,021	742,406	742,406
Mirae Asset Mobility Investment Fund I	Korea	Investment	December	22.99	2,000,000	1,885,407	1,885,407	2,000,000	1,917,647	1,917,647
KB-FT 1st Green Growth Investment Fund ¹	Korea	Investment	December	10.34	2,000,000	1,847,275	1,847,275	2,000,000	1,888,925	1,888,925
THE CHAEUL FUND NO.1	Korea	Investment	—	—	—	—	—	1,000,000	953,961	953,961
POSITVE Sobujang Venture Fund #1	Korea	Investment	—	—	—	—	—	879,121	869,206	869,206
KB-NP Green ESG New Technology Venture Capital Fund ¹	Korea	Investment	December	11.59	18,443,847	18,661,880	18,661,879	16,100,000	15,436,985	15,436,985
Hisstory 2022 Fintech Fund	Korea	Investment	—	—	—	—	—	2,000,000	1,896,203	1,896,203
KB Star REIT	Korea	Investment	December	26.13	130,776,646	61,508,907	61,508,907	134,304,646	98,600,791	98,600,791
KB Bio Private Equity Investment Fund IV	Korea	Investment	—	—	—	—	—	7,500,000	7,369,339	7,369,339
Nextrade Co., Ltd. ¹	Korea	Other financial	September	6.64	9,700,000	8,373,711	8,373,711	9,700,000	8,180,476	8,180,476
MW-Pyco NewWave New Technology Investment Fund 4th	Korea	Investment	December	51.28	2,000,000	—	—	2,000,000	1,921,768	1,921,768
KB-SUSUNG 1st Investment Fund ¹	Korea	Investment	December	10.00	130,000	555,018	555,018	1,076,000	1,458,974	1,458,974
Bitgoeul Cheomdan Green 1st Co., Ltd.¹	Korea	Investment	December	19.00	342,000	240,391	240,391	342,000	241,205	241,205
Shinhan-Eco Venture Fund 2nd	Korea	Investment	December	20.00	1,885,000	1,807,236	1,807,236	2,050,000	1,973,060	1,973,060

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024


Leading H2O Fund 1	Korea	Investment	December	48.23	1,500,000	1,420,563	1,420,563	1,500,000	1,454,933	1,454,933
2023 JB Newtech No.2 Fund	Korea	Investment	—	—	—	—	—	1,405,557	1,705,208	1,705,208
U-KB Credit No.1 Private Equity	Korea	Investment	December	23.26	17,046,512	15,167,171	15,167,171	5,093,023	5,584,704	5,584,704
KB-BridgePole Venture Investment Fund #2 ¹	Korea	Investment	December	14.29	1,500,000	1,432,460	1,432,460	1,500,000	1,463,485	1,463,485
Sirius Silicon Valley I New Technology Fund	Korea	Investment	December	23.81	500,000	462,967	462,967	500,000	474,480	474,480
Timefolio Athleisure Investment Fund	Korea	Investment	December	48.19	4,000,000	3,750,139	3,750,139	4,000,000	3,922,757	3,922,757
COMPA Global Scale-Up Fund No.3	Korea	Investment	December	29.99	1,000,000	957,102	957,102	1,000,000	979,681	979,681
AKK Robotech Valueup New Technology Investment Fund	Korea	Investment	—	—	—	—	—	1,000,000	1,126,629	1,126,629
YG MCE PROJECT No.1 Fund	Korea	Investment	December	27.78	1,500,000	—	—	1,500,000	1,476,809	1,476,809
HI YG Win-win Fund No.2	Korea	Investment	December	20.62	2,000,000	2,153,903	2,153,903	2,000,000	1,972,792	1,972,792
KB-CJ Venture Fund 1st	Korea	Investment	December	40.00	1,800,000	1,869,323	1,869,323	1,800,000	1,732,747	1,732,747
Elohim-Bilanx aerospace No.1 Fund	Korea	Investment	December	20.94	2,000,000	1,936,905	1,936,905	2,000,000	1,978,245	1,978,245
KB-SUSUNG 2nd Investment Fund ¹	Korea	Investment	December	12.66	2,000,000	1,958,918	1,958,918	2,000,000	1,980,873	1,980,873
IMM global Secondary 1-1 Equity Private Fund	Korea	Investment	December	41.65	3,412,973	4,975,463	4,975,463	2,819,038	3,753,976	3,753,976
LIB Material Investment Fund	Korea	Investment	December	27.26	4,098,144	829,346	829,346	4,098,144	1,474,980	1,474,980
NOVORSEC-SJG Consumer Secondary Fund	Korea	Investment	—	—	—	—	—	1,700,000	1,687,706	1,687,706
KBSBI Global High- tech Strategic Private Equity Investment Limited Partnership ¹	Korea	Investment	December	16.3	15,274,098	14,646,750	14,646,750	5,059,098	4,828,296	4,828,296
KB-Cyrus Tourism Venture Fund ¹	Korea	Investment	December	18.52	2,000,000	1,855,457	1,855,457	1,000,000	977,172	977,172
IBKS Design Fund	Korea	Investment	December	46.51	2,000,000	4,810,951	4,810,951	2,000,000	1,996,162	1,996,162
NICE DATA INTELLIGENCE VENTURE FUND	Korea	Investment	—	—	—	—	—	1,000,000	997,864	997,864
Pectus Hanwha Fund No.2	Korea	Investment	—	—	—	—	—	2,000,000	1,950,322	1,950,322
Korea Environment Technology Co., LTD	Korea	Waste disposal industry	—	—	—	—	—	107,427,843	43,155,859	107,427,843
KB-IMM Newstar Real Estate Private Fund 1	Korea	Investment	December	43.00	40,283,308	41,725,355	41,725,355	20,897,275	21,897,251	21,897,251
KBLB Middle Market Enterprises Innovation Private Equity Fund ¹	Korea	Investment	December	19.05	4,284,000	3,723,179	3,723,179	—	—	—
YG AI Industrial Automation Solutions FUND	Korea	Investment	December	28.17	2,000,000	1,992,299	1,992,299	—	—	—
KB-Novus Genesis Private Equity Fund ¹	Korea	Investment	December	9.39	2,300,000	2,267,326	2,267,326	—	—	—

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024


Semicolon Susong Commissioned Real Estate Investment Trust	Korea	Investment	December	39.39	77,000,000	76,142,790	76,142,790	—	—	—
ATP TP VC Fund No.1	Korea	Investment	December	39.60	2,000,000	1,976,013	1,976,013	—	—	—
AIM-KB-DOUBLE Connected Future Investment Fund ¹	Korea	Investment	December	8.33	1,000,000	983,756	983,756	—	—	—
KB-IMM Newstar Real Estate Private Fund 2	Korea	Investment	December	38.18	16,509,818	16,524,813	16,524,813	—	—	—
K-1 23th Yeoksam Real Estate Investment Trust Company	Korea	Investment	December	41.30	16,050,000	62,424,217	62,424,217	—	—	—
IMM Korea Beauty Co-Invest Private Equity Fund	Korea	Investment	December	51.02	50,000,000	49,633,383	49,633,383	—	—	—
KB-GVA Premier Mezzanine Investment Fund¹	Korea	Investment	December	3.07	500,000	498,181	498,181	—	—	—
KB-ANDA Deep Tech Venture Fund	Korea	Investment	December	30.00	1,249,500	1,249,500	1,249,500	—	—	—

					544,934,266	524,319,943	524,795,448	456,237,001	352,490,610	417,779,180

¹	Although the ownership of the Group is less than 20%, these are included as associates, since the Group has a significant influence over investee’s policy and operations.

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

Changes in investments in associates for the years ended December 31, 2025 and 2024, are as follows:


(in thousands of Korean won)	2025
(in thousands of Korean won)	Beginning balance		Acquisition		Dividends		Disposal			Re-classification ¹		Changes in equity of associates			Profit (loss) of associates			Ending balance
KB Special Purpose Acquisition Company No.21		20,894		—		—		(20,894	)		—		—			—			—
KB Special Purpose Acquisition Company No.25		9,965		—		—		—			—		(3	)		203			10,165
KB Special Purpose Acquisition Company No.26		9,836		—		—		(9,836	)		—		—			—			—
KB Special Purpose Acquisition Company No.27		10,236		—		—		—			—		(3	)		227			10,460
KB Special Purpose Acquisition Company No.28		9,645		—		—		(9,645	)		—		—			—			—
KB Special Purpose Acquisition Company No.29		19,982		—		—		—			—		(8	)		393			20,367
KB Special Purpose Acquisition Company No.30		19,518		—		—		—			—		(6	)		418			19,930
KB Special Purpose Acquisition Company No.31		22,618		—		—		—			—		(2,888	)		316			20,046
KB Special Purpose Acquisition Company No.32				10,000		—		—			—		10,622			(1,023	)		19,599
KB Special Purpose Acquisition Company No.33		—		160,000		—		—			—		10,232			(584	)		169,648
KB New Paradigm Agriculture Venture Fund		1,291,253		—		—		(375,000	)		—		—			(326,277	)		589,976
KB KONEX Market Vitalization Fund		1,928,317		—		—		(1,928,317	)		—		—			—			—

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024


KB-KDBC New Technology Business Investment Fund	2,601,286	—	—		(2,601,286	)	—	—		—		—
KBTS Technology Venture Private Equity Fund	3,179,737	—	—		—		—	—		(455,134	)	2,724,603
KB-SJ Tourism Venture Fund	1,780,925	—	(334,000	)	(190,000	)	—	—		261,276		1,518,201
KB Shinjasanaubo Fund	1,031,767	—	—		—		—	—		(350,683	)	681,084
UNION Media Commerce Fund	945,674	—	—		—		—	—		(4,963	)	940,711
KB SPROTT Renewable Private Equity Fund I	3,052,067	—	—		—		—	—		(2,229,961	)	822,106
KB-Stonebridge Secondary Private Equity Fund	4,819,055	—	(61,961	)	(1,248,439	)	—	—		(77,871	)	3,430,784
KB-SP Private Equity Fund IV	3,995,113	—	—		(3,995,113	)	—	—		—		—
KB-UTC Inno-Tech Venture Fund	3,910,530	—	—		—		—	—		(1,444,399	)	2,466,131
KB-NAU Special Situation Corporate Restructuring Private Equity Fund	8,021,543	1,800,000	—		(1,700,814	)	—	—		1,848,911		9,969,640
KB-KTB Technology Venture Fund	9,088,456	—	—		—		—	—		(308,275	)	8,780,181
KB Bio Global Expansion Private Equity Fund No.1	17,870,374	—	—		—		—	—		(581,871	)	17,288,503
KB Digital Platform Fund	28,288,502	10,000,000	—		—		—	—		13,598,574		51,887,076
KB-SOLIDUS Healthcare Investment Fund	3,484,892	1,316,667	—		—		—	—		76,873		4,878,432
G Payment Joint Stock Company	2,520,780	—	—		—		—	(135,432	)	206		2,385,554
KB-GeneN Medical Venture Fund 1	1,880,230	—	—		—		—	—		(41,844	)	1,838,386
DA-Friend Investment Fund II	906,175	—	—		—		—	—		(4,510	)	901,665
Cornerstone Pentastone IV Fund	763,949	—	—		—		—	—		(536	)	763,413
JS Private Equity Fund III	742,406	—	—		(749,248	)	—	—		417,575		410,733
Mirae Asset Mobility Investment Fund I	1,917,647	—	—		—		—	—		(32,240	)	1,885,407
KB-FT 1st Green Growth Investment Fund	1,888,925	—	—		—		—	—		(41,650	)	1,847,275

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024


THE CHAEUL FUND NO.1	953,961	—	—		(953,961	)	—	—		—		—
POSITVE Sobujang Venture Fund #1	869,206	—	—		(869,206	)	—	—		—		—
KB-NP Green ESG New Technology Venture Capital Fund	15,436,985	3,480,000	—		(1,136,153	)	—	—		881,047		18,661,879
Hisstory 2022 Fintech Fund	1,896,203	—	—		(1,896,203	)	—	—		—		—
KB Star REIT	98,600,791	—	(9,442,306	)	(3,528,000	)	—	(423,573	)	(23,698,005	)	61,508,907
KB Bio Private Equity Investment Fund IV	7,369,339	—	—		(7,369,339	)	—	—		—		—
Nextrade Co., Ltd.	8,180,476	—	—		—		—	—		193,235		8,373,711
MW-Pyco NewWave New Technology Investment Fund 4th	1,921,768	—	—		—		—	—		(1,921,768	)	—
KB-SUSUNG 1st Investment Fund	1,458,974	—	—		(946,000	)	—	—		42,044		555,018
Bitgoeul Cheomdan Green 1st Co., Ltd.	241,205	—	—		—		—	—		(814	)	240,391
Shinhan-Eco Venture Fund 2nd	1,973,060	25,000	—		(190,000	)	—	—		(824	)	1,807,236
Leading H2O Fund 1	1,454,933	—	—		—		—	—		(34,370	)	1,420,563
2023 JB Newtech No.2 Fund	1,705,208	—	—		(1,705,208	)	—	—		—		—
U-KB Credit No.1 Private Equity	5,584,704	11,953,488	—		—		—	—		(2,371,021	)	15,167,171
KB-BridgePole Venture Investment Fund #2	1,463,485	—	—		—		—	—		(31,025	)	1,432,460
Sirius Silicon Valley I New Technology Fund	474,480	—	—		—		—	—		(11,513	)	462,967
Timefolio Athleisure Investment Fund	3,922,757	—	—		—		—	—		(172,618	)	3,750,139
COMPA Global Scale-Up Fund No.3	979,681	—	—		—		—	—		(22,579	)	957,102
AKK Robotech Valueup New Technology Investment Fund	1,126,629	—	—		(1,126,629	)	—	—		—		—
YG MCE PROJECT No.1 Fund	1,476,809	—	—		—		—	—		(1,476,809	)	—
HI YG Win-win Fund No.2	1,972,792	—	—		—		—	—		181,111		2,153,903
KB-CJ Venture Fund 1st	1,732,747	—	—		—		—	—		136,576		1,869,323
Elohim-Bilanx aerospace No.1 Fund	1,978,245	—	—		—		—	—		(41,340	)	1,936,905

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024


KB-SUSUNG 2nd Investment Fund	1,980,873	—	—		—		—	—	(21,955	)	1,958,918
IMM global Secondary 1-1 Equity Private Fund	3,753,976	756,186	(3,511	)	(162,251	)	—	—	631,063		4,975,463
LIB Material Investment Fund	1,474,980	—	—		—		—	—	(645,634	)	829,346
NOVORSEC-SJG Consumer Secondary Fund	1,687,706	—	—		(1,687,706	)	—	—	—		—
KBSBI Global High-tech Strategic Private Equity Investment Limited Partnership	4,828,296	10,215,000	—		—		—	—	(396,546	)	14,646,750
KB-Cyrus Tourism Venture Fund	977,172	1,000,000	—		—		—	—	(121,715	)	1,855,457
IBKS Design Fund	1,996,162	—	—		—		—	—	2,814,789		4,810,951
NICE DATA INTELLIGENCE VENTURE FUND	997,864	—	—		(997,864	)	—	—	—		—
Pectus Hanwha Fund No.2	1,950,322	—	—		(1,950,322	)	—	—	—		—
Korea Environment Technology Co., LTD	107,427,843	—	—		(107,427,843	)	—	—	—		—
KB-IMM Newstar Real Estate Private Fund 1	21,897,251	19,386,033	(1,869,618	)	—		—	—	2,311,689		41,725,355
E&I Holdings Co., Ltd	—	27,300,000	—		(27,300,000	)	—	—	—		—
KBLB Middle Market Enterprises Innovation Private Equity Fund	—	4,284,000	—		—		—	—	(560,821	)	3,723,179
YG AI Industrial Automation Solutions FUND	—	2,000,000	—		—		—	—	(7,701	)	1,992,299
KB-Novus Genesis Private Equity Fund	—	2,300,000	—		—		—	—	(32,674	)	2,267,326
Semicolon Susong Commissioned Real Estate Investment Trust	—	77,000,000	(857,210	)	—		—	—	—		76,142,790
ATP TP VC Fund No.1	—	2,000,000	—		—		—	—	(23,987	)	1,976,013
AIM-KB-DOUBLE Connected Future Investment Fund	—	1,000,000	—		—		—	—	(16,244	)	983,756
KB-IMM Newstar Real Estate Private Fund 2	—	16,509,818	(138,002	)	—		—	—	152,997		16,524,813
K-1 23th Yeoksam Real Estate Investment Trust Company ¹	—	—	(2,334,156	)	—		61,901,346	—	2,857,027		62,424,217

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024


IMM Korea Beauty Co-Invest Private Equity Fund	—	50,000,000	—		—		—	—		(366,617	)	49,633,383
KB-GVA Premier Mezzanine Investment Fund	—	500,000	—		—		—	—		(1,819	)	498,181
KB-ANDA Deep Tech Venture Fund	—	1,249,500	—		—		—	—		—		1,249,500

	417,779,180	244,245,692	(15,040,764	)	(172,075,277	)	61,901,346	(541,059	)	(11,473,670	)	524,795,448

¹	These investments are reclassified from investments in subsidiaries to associates due to disposal in partially for the year ended December 31, 2025.


	2024
(in thousands of Korean won)	Beginning balance		Acquisition		Dividends		Disposal			Changes in equity of associates		Profit (loss) of associates			Ending balance
KB Special Purpose Acquisition Company No.21		20,529		—		—		—			1		364			20,894
KB Special Purpose Acquisition Company No.22		20,125		—		—		(20,125	)		—		—			—
KB Special Purpose Acquisition Company No.25		9,771		—		—		—			—		194			9,965
KB Special Purpose Acquisition Company No.26		9,613		—		—		—			—		223			9,836
KB Special Purpose Acquisition Company No.27		9,959		—		—		—			—		277			10,236
KB Special Purpose Acquisition Company No.28		—		5,000		—		4,052			611		(18	)		9,645
KB Special Purpose Acquisition Company No.29		—		10,000		—		6,452			3,988		(458	)		19,982
KB Special Purpose Acquisition Company No.30		—		10,000		—		8,185			1,771		(438	)		19,518
KB Special Purpose Acquisition Company No.31		—		10,000		—		—			13,498		(880	)		22,618

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024


KB New Paradigm Agriculture Venture Fund	2,615,088	—	—		(825,000	)	—	(498,835	)	1,291,253
KB KONEX Market Vitalization Fund	7,633,039	—	(3,084,375	)	(75,000	)	—	(2,545,347	)	1,928,317
KB-KDBC New Technology Business Investment Fund	3,031,227	—	—		(300,000	)	—	(129,941	)	2,601,286
KBTS Technology Venture Private Equity Fund	3,534,896	—	—		(704,000	)	—	348,841		3,179,737
KB-SJ Tourism Venture Fund	3,241,734	—	(1,517,461	)	(4,030,000	)	—	4,086,652		1,780,925
KB Shinjasanaubo Fund	1,765,941	—	—		—		—	(734,174	)	1,031,767
UNION Media Commerce Fund	952,209	—	—		—		—	(6,535	)	945,674
KB-Brain KOSDAQ Scale-Up Fund	2,304,484	—	—		(2,304,484	)	—	—		—
KB SPROTT Renewable Private Equity Fund I	3,337,160	—	—		—		—	(285,093	)	3,052,067
KB-Stonebridge Secondary Private Equity Fund	5,395,679	—	(14,746	)	(190,539	)	—	(371,339	)	4,819,055
KB-SP Private Equity Fund IV	2,494,808	—	—		—		668,154	832,151		3,995,113
KB-UTC Inno-Tech Venture Fund	5,227,210	—	—		(112,500	)	—	(1,204,180	)	3,910,530
KB-NAU Special Situation Corporate Restructuring Private Equity Fund	8,904,972	4,482,000	—		(3,889,195	)	—	(1,476,234	)	8,021,543
KB Material and Parts No. 1 PEF	3,299,669	—	—		(3,299,669	)	—	—		—
KB Global Commerce Private Equity Investment Fund	8,635,840	—	—		(8,635,840	)	—	—		—
KB-KTB Technology Venture Fund	7,639,550	2,000,000	—		—		—	(551,094	)	9,088,456
KB Bio Global Expansion Private Equity Fund No.1	15,895,111	—	—		—		—	1,975,263		17,870,374
KB Digital Platform Fund	17,123,835	10,000,000	—		—		—	1,164,667		28,288,502
KB-SOLIDUS Healthcare Investment Fund	2,249,721	1,300,000	—		—		—	(64,829	)	3,484,892
G Payment Joint Stock Company	8,966,066	—	—		(1,504,288	)	432,445	(5,373,443	)	2,520,780
KB-GeneN Medical Venture Fund 1	1,922,291	—	—		—		—	(42,061	)	1,880,230
KB-BridgePole Venture Investment Fund	863,129	—	—		(863,129	)	—	—		—

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024


KB-Kyobo New Mobility Power Fund	2,621,880	—	—		(2,621,880	)	—		—		—
DA-Friend Investment Fund II	927,462	—	—		—		—		(21,287	)	906,175
Cornerstone Pentastone IV Fund	774,734	—	—		—		—		(10,785	)	763,949
JS Private Equity Fund III	1,861,512	—	—		(754,979	)	—		(364,127	)	742,406
Mirae Asset Mobility Investment Fund I	1,948,750	—	—		—		—		(31,103	)	1,917,647
KB-FT 1st Green Growth Investment Fund	1,928,089	—	—		—		—		(39,164	)	1,888,925
THE CHAEUL FUND NO.1	972,191	—	—		—		—		(18,230	)	953,961
POSITVE Sobujang Venture Fund #1	1,965,090	—	(2,128,815	)	(1,120,879	)	—		2,153,810		869,206
KB-NP Green ESG New Technology Venture Capital Fund	7,771,668	7,920,000	—		—		—		(254,683	)	15,436,985
Hisstory 2022 Fintech Fund	1,937,813	—	—		—		—		(41,610	)	1,896,203
KB Star REIT	120,231,339	—	(10,263,978	)	(468,136	)	8,222,578		(19,121,012	)	98,600,791
KB Bio Private Equity Investment Fund IV	6,770,765	—	—		—		—		598,574		7,369,339
Nextrade Co., Ltd.	9,225,312	—	—		—		—		(1,044,836	)	8,180,476
LAKEWOOD-AVES Fund No.1	1,976,715	—	—		(1,976,715	)	—		—		—
MW-Pyco NewWave New Technology Investment Fund 4th	1,965,019	—	—		—		—		(43,251	)	1,921,768
KB-SUSUNG 1st Investment Fund	1,968,977	—	—		(924,000	)	—		413,997		1,458,974
Friend 55 New Technology Business Investment Fund	1,182,473	—	—		(1,182,473	)	—		—		—
Bitgoeul Cheomdan Green 1st Co., Ltd.	165,451	152,000	—		—		(928	)	(75,318	)	241,205
DSIP-Pharos Bioenergy Fund	16,457,868	—	—		(16,457,868	)	—		—		—
Shinhan-Eco Venture Fund 2nd	1,800,072	225,000	—		—		—		(52,012	)	1,973,060
Leading H2O Fund 1	1,488,980	—	—		—		—		(34,047	)	1,454,933
2023 JB Newtech No.2 Fund	1,785,594	—	(149,904	)	(394,443	)	—		463,961		1,705,208
U-KB Credit No.1 Private Equity	4,779,307	279,070	—		—		—		526,327		5,584,704

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024


KB-BridgePole Venture Investment Fund #2	1,494,373	—	—		—		—	(30,888	)	1,463,485
Sirius Silicon Valley I New Technology Fund	485,282	—	—		—		—	(10,802	)	474,480
Timefolio Athleisure Investment Fund	—	4,000,000	—		—		—	(77,243	)	3,922,757
COMPA Global Scale-Up Fund No.3	—	1,000,000	—		—		—	(20,319	)	979,681
AKK Robotech Valueup New Technology Investment Fund	—	1,000,000	—		—		—	126,629		1,126,629
YG MCE PROJECT No.1 Fund	—	1,500,000	—		—		—	(23,191	)	1,476,809
HI YG Win-win Fund No.2	—	2,000,000	—		—		—	(27,208	)	1,972,792
KB-CJ Venture Fund 1st	—	1,800,000	—		—		—	(67,253	)	1,732,747
Elohim-Bilanx aerospace No.1 Fund	—	2,000,000	—		—		—	(21,755	)	1,978,245
KB-SUSUNG 2nd Investment Fund	—	2,000,000	—		—		—	(19,127	)	1,980,873
IMM global Secondary 1-1 Equity Private Fund	—	2,819,038	—		—		—	934,938		3,753,976
LIB Material Investment Fund	—	4,098,144	—		—		—	(2,623,164	)	1,474,980
NOVORSEC-SJG Consumer Secondary Fund	—	1,700,000	—		—		—	(12,294	)	1,687,706
KBSBI Global High-tech Strategic Private Equity Investment Limited Partnership	—	5,059,098	—		—		—	(230,802	)	4,828,296
KB-Cyrus Tourism Venture Fund	—	1,000,000	—		—		—	(22,828	)	977,172
IBKS Design Fund	—	2,000,000	—		—		—	(3,838	)	1,996,162
NICE DATA INTELLIGENCE VENTURE FUND	—	1,000,000	—		—		—	(2,136	)	997,864
Pectus Hanwha Fund No.2	—	2,000,000	—		—		—	(49,678	)	1,950,322
KB-IMM Newstar Real Estate Private Fund 1	—	20,897,275	—		—		—	999,976		21,897,251
Korea Environment Technology Co., LTD	—	107,427,843	—		—		—	—		107,427,843

	311,590,372	189,694,468	(17,159,279	)	(52,636,453	)	9,342,118	(23,052,046	)	417,779,180

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

Summarized financial information of the associates as at and for the years ended December 31, 2025 and 2024, are as follows:


	December 31, 2025						2025
(in thousands of Korean won)	Assets		Liabilities		Equity		Operating Revenue		Profit (loss) for the period			Total comprehensive Income(loss)
KB Special Purpose Acquisition Company No.25		10,167,796		1,415,397		8,752,399		252,938		175,268			175,268
KB Special Purpose Acquisition Company No.27		31,230,135		4,233,877		26,996,258		840,597		587,123			587,123
KB Special Purpose Acquisition Company No.29		14,864,541		2,196,029		12,668,512		364,908		244,571			244,571
KB Special Purpose Acquisition Company No.30		12,131,810		1,548,853		10,582,957		308,533		222,034			222,034
KB Special Purpose Acquisition Company No.31		14,691,378		2,242,622		12,448,756		384,774		196,407			196,407
KB Special Purpose Acquisition Company No.32		14,470,529		2,064,333		12,406,196		152,650		52,673			52,673
KB Special Purpose Acquisition Company No.33		17,926,147		2,433,554		15,492,593		81,133		16,671			16,671
KB New Paradigm Agriculture Venture Fund		2,525,909		166,005		2,359,904		589,031		(1,305,109	)		(1,305,109	)
KBTS Technology Venture Private Equity Fund		23,948,498		6,919,730		17,028,768		1,659		(2,844,590	)		(2,844,590	)
KB-SJ Tourism Venture Fund		8,353,525		155,185		8,198,340		6,008,966		1,410,893			1,410,893
KB Shinjasanaubo Fund		5,315,521		671,768		4,643,753		279,035		(2,391,019	)		(2,391,019	)
UNION Media Commerce Fund		3,318,493		73,036		3,245,457		—		(17,122	)		(17,122	)
KB SPROTT Renewable Private Equity Fund I		8,890,204		815,261		8,074,943		6		(704,214	)		(704,214	)
KB-Stonebridge Secondary Private Equity Fund		82,581,950		140,215		82,441,735		2,348,555		(1,530,924	)		(1,530,924	)
KB-UTC Inno-Tech Venture Fund		16,914,343		210,399		16,703,944		27,922		(9,783,391	)		(9,783,391	)
KB-NAU Special Situation Corporate Restructuring Private Equity Fund		150,637,690		501,541		150,136,149		10,187,428		27,109,631			27,109,631
KB-KTB Technology Venture Fund		49,092,706		801,713		48,290,993		135,375		(1,695,513	)		(1,695,513	)
KB Bio Global Expansion Private Equity Fund No.1		43,904,321		106,781		43,797,540		1,017		(1,474,073	)		(1,474,073	)
KB Digital Platform Fund		312,090,297		767,839		311,322,458		100,990,179		81,591,445			81,591,445
KB-SOLIDUS Healthcare Investment Fund		99,858,971		2,750		99,856,221		2,984,662		1,522,111			1,522,111
G Payment Joint Stock Company		12,588,727		5,714,098		6,874,629		5,072,407		908			908
KB-GeneN Medical Venture Fund 1		8,516,638		354,204		8,162,434		22		(185,786	)		(185,786	)
DA-Friend Investment Fund II		3,500,297		168,011		3,332,286		—		(16,670	)		(16,670	)
Cornerstone Pentastone IV Fund		3,550,289		2,750		3,547,539		64		(2,489	)		(2,489	)
JS Private Equity Fund III		2,005,840		495		2,005,345		2,151,879		2,038,746			2,038,746
Mirae Asset Mobility Investment Fund I		8,275,534		74,013		8,201,521		7,765		(140,242	)		(140,242	)
KB-FT 1st Green Growth Investment Fund		17,867,770		—		17,867,770		326		(402,862	)		(402,862	)
KB-NP Green ESG New Technology Venture Capital Fund		164,619,894		3,649,986		160,969,908		7,955,091		7,599,564			7,599,564
KB Star REIT		1,242,229,311		1,006,866,871		235,362,440		69,126,465		(94,618,921	)		(96,188,602	)
Nextrade Co., Ltd.		129,215,059		3,091,428		126,123,631		39,765,891		2,910,479			2,910,479
KB-SUSUNG 1st Investment Fund		5,550,179		—		5,550,179		1,651,762		420,435			420,435
Bitgoeul Cheomdan Green 1st Co., Ltd.		1,270,057		4,840		1,265,217		—		(4,284	)		(4,284	)

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024


Shinhan-Eco Venture Fund 2nd	9,042,530	6,351	9,036,179	257,434	(4,122	)	(4,122	)
Leading H2O Fund 1	2,946,621	1,320	2,945,301	1,852	(71,260	)	(71,260	)
U-KB Credit No.1 Private Equity	70,559,464	1,018,146	69,541,318	591,081	(5,872,907	)	(5,872,907	)
KB-BridgePole Venture Investment Fund #2	10,027,217	—	10,027,217	3,278	(217,178	)	(217,178	)
Sirius Silicon Valley I New Technology Fund	1,945,783	1,320	1,944,463	6,976	(48,354	)	(48,354	)
Timefolio Athleisure Investment Fund	7,781,539	—	7,781,539	81,272	(358,181	)	(358,181	)
COMPA Global Scale-Up Fund No.3	3,190,978	—	3,190,978	4,381	(75,279	)	(75,279	)
HI YG Win-win Fund No.2	10,446,432	—	10,446,432	5,636	878,392		878,392
KB-CJ Venture Fund 1st	4,731,516	58,210	4,673,306	726,024	341,440		341,440
Elohim-Bilanx aerospace No.1 Fund	9,248,721	—	9,248,721	3,297	(197,401	)	(197,401	)
KB-SUSUNG 2nd Investment Fund	15,475,453	—	15,475,453	458,405	(173,445	)	(173,445	)
IMM global Secondary 1-1 Equity Private Fund	12,152,002	205,915	11,946,087	1,555,417	1,515,184		1,515,184
LIB Material Investment Fund	3,041,835	—	3,041,835	—	(700,066	)	(700,066	)
KBSBI Global High-tech Strategic Private Equity Investment Limited Partnership	90,336,944	454,723	89,882,221	98,844	(2,433,470	)	(2,433,470	)
KB-Cyrus Tourism Venture Fund	10,019,466	—	10,019,466	18,179	(657,261	)	(657,261	)
IBKS Design Fund	10,343,544	—	10,343,544	6,114,301	6,051,796		6,051,796
KB-IMM Newstar Real Estate Private Fund 1	101,364,284	4,334,346	97,029,938	8,460,196	5,306,836		5,306,836
KBLB Middle Market Enterprises Innovation Private Equity Fund	20,062,146	515,454	19,546,692	267	(2,944,308	)	(2,944,308	)
YG AI Industrial Automation Solutions FUND	7,072,662	—	7,072,662	74,761	(27,338	)	(27,338	)
KB-Novus Genesis Private Equity Fund	24,244,681	92,733	24,151,948	3,792	(348,052	)	(348,052	)
Semicolon Susong Commissioned Real Estate Investment Trust	597,990,723	408,960,702	189,030,021	13,973,599	(17,316	)	(17,316	)
ATP TP VC Fund No.1	4,994,380	3,960	4,990,420	626	(60,580	)	(60,580	)
AIM-KB-DOUBLE Connected Future Investment Fund	11,868,321	63,255	11,805,066	572	(194,934	)	(194,934	)
KB-IMM Newstar Real Estate Private Fund 2	43,969,114	689,842	43,279,272	840,102	400,706		400,706
K-1 23th Yeoksam Real Estate Investment Trust Company	294,284,255	169,061,696	125,222,559	3,914,958	3,857,324		3,857,324
IMM Korea Beauty Co-Invest Private Equity Fund	97,550,330	268,899	97,281,431	1,424	(718,569	)	(718,569	)
KB-GVA Premier Mezzanine Investment Fund	16,212,787	—	16,212,787	—	(59,213	)	(59,213	)
KB-ANDA Deep Tech Venture Fund	4,435,147	270,147	4,165,000	—	—		—

Summarized financial information of associates for which financial information is not available as at December 31, 2025 are excluded.

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024


	December 31, 2024						2024
(in thousands of Korean won)	Assets		Liabilities		Equity		Operating Revenue		Profit (loss) for the period			Total comprehensive Income(loss)
KB Special Purpose Acquisition Company No.21		18,332,104		2,222,965		16,109,139		539,414		280,847			280,847
KB Special Purpose Acquisition Company No.25		9,960,644		1,380,515		8,580,129		297,025		167,600			167,600
KB Special Purpose Acquisition Company No.26		12,198,917		1,369,222		10,829,695		357,751		246,179			246,179
KB Special Purpose Acquisition Company No.27		30,491,081		4,071,785		26,419,296		993,859		715,088			715,088
KB Special Purpose Acquisition Company No.28		12,135,104		1,516,167		10,618,937		223,386		59,682			59,682
KB Special Purpose Acquisition Company No.29		14,557,704		2,129,143		12,428,561		219,019		98,029			98,029
KB Special Purpose Acquisition Company No.30		11,866,140		1,502,204		10,363,936		79,990		22,592			22,592
KB Special Purpose Acquisition Company No.31		2,588,400		2,113,426		474,974		8,356		(18,484	)		(18,484	)
KB New Paradigm Agriculture Venture Fund		5,519,607		354,593		5,165,014		2,051,864		(1,995,337	)		(1,995,337	)
KB KONEX Market Vitalization Fund		8,668,671		441,510		8,227,161		2,716,958		(10,860,148	)		(10,860,148	)
KB-KDBC New Technology Business Investment Fund		7,803,895		—		7,803,895		398,002		(389,823	)		(389,823	)
KBTS Technology Venture Private Equity Fund		26,460,488		6,587,130		19,873,358		1,832,117		2,180,255			2,180,255
KB-SJ Tourism Venture Fund		9,892,964		275,917		9,617,047		26,720,057		22,067,920			22,067,920
KB Shinjasanaubo Fund		7,547,286		512,514		7,034,772		489,073		(5,005,733	)		(5,005,733	)
UNION Media Commerce Fund		3,318,493		55,914		3,262,579		—		(22,543	)		(22,543	)
KB SPROTT Renewable Private Equity Fund I		24,548,257		251,342		24,296,915		573		(637,660	)		(637,660	)
KB-Stonebridge Secondary Private Equity Fund		115,992,985		193,139		115,799,846		6,646,286		(8,923,271	)		(8,923,271	)
KB-SP Private Equity Fund IV		22,631,499		560,136		22,071,363		8,362,610		8,143,386			8,143,386
KB-UTC Inno-Tech Venture Fund		26,935,093		447,758		26,487,335		967,517		(8,156,312	)		(8,156,312	)
KB-NAU Special Situation Corporate Restructuring Private Equity Fund		123,434,421		407,903		123,026,518		24,533,608		(28,117,368	)		(28,117,368	)
KB-KTB Technology Venture Fund		50,673,348		686,842		49,986,506		692,694		(3,031,017	)		(3,031,017	)
KB Bio Global Expansion Private Equity Fund No.1		45,378,133		106,519		45,271,614		5,422,750		5,003,999			5,003,999
KB Digital Platform Fund		170,540,295		809,282		169,731,013		10,521,343		6,988,002			6,988,002
KB-SOLIDUS Healthcare Investment Fund		69,003,602		2,750		69,000,852		39,504		(1,283,621	)		(1,283,621	)
G Payment Joint Stock Company		10,253,233		2,993,608		7,259,625		1,410,529		(944,194	)		(944,194	)
KB-GeneN Medical Venture Fund 1		8,525,819		177,600		8,348,219		32		(186,754	)		(186,754	)
DA-Friend Investment Fund II		3,500,297		151,340		3,348,957		1		(78,670	)		(78,670	)
Cornerstone Pentastone IV Fund		3,552,778		2,750		3,550,028		37		(50,116	)		(50,116	)
JS Private Equity Fund III		3,625,184		495		3,624,689		308,810		(1,777,796	)		(1,777,796	)
Mirae Asset Mobility Investment Fund I		8,416,677		74,913		8,341,764		14,450		(135,298	)		(135,298	)
KB-FT 1st Green Growth Investment Fund		18,270,632		—		18,270,632		12,171		(378,806	)		(378,806	)
THE CHAEUL FUND NO.1		3,052,675		—		3,052,675		663		(58,337	)		(58,337	)

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024


POSITVE Sobujang Venture Fund #1	2,003,047	25,603	1,977,444	5,741,836	4,899,917		4,899,917
KB-NP Green ESG New Technology Venture Capital Fund	133,928,517	775,262	133,153,255	766,791	(2,196,796	)	(2,196,796	)
Hisstory 2022 Fintech Fund	5,506,581	54,998	5,451,583	769	(119,630	)	(119,630	)
KB Star REIT	1,141,992,556	774,895,403	367,097,153	68,824,273	(71,231,027	)	(40,599,665	)
KB Bio Private Equity Investment Fund IV	30,459,936	—	30,459,936	2,806,489	2,474,105		2,474,105
Nextrade Co., Ltd.	125,776,463	2,563,311	123,213,152	3,855,984	(15,737,169	)	(15,737,169	)
MW-Pyco NewWave New Technology Investment Fund 4th	3,747,448	—	3,747,448	1,483	(84,338	)	(84,338	)
KB-SUSUNG 1st Investment Fund	14,589,744	—	14,589,744	5,164,403	4,139,974		4,139,974
Bitgoeul Cheomdan Green 1st Co., Ltd.	1,274,434	4,933	1,269,501	1,216	(396,409	)	(396,409	)
Shinhan-Eco Venture Fund 2nd	9,868,245	2,943	9,865,302	191	(260,058	)	(260,058	)
Leading H2O Fund 1	3,017,881	1,320	3,016,561	2,622	(70,591	)	(70,591	)
2023 JB Newtech No.2 Fund	6,634,045	2,680	6,631,365	2,532,646	1,804,292		1,804,292
U-KB Credit No.1 Private Equity	24,988,198	973,973	24,014,225	4,487,180	2,263,206		2,263,206
KB-BridgePole Venture Investment Fund #2	10,244,395	—	10,244,395	4,453	(216,217	)	(216,217	)
Sirius Silicon Valley I New Technology Fund	1,994,137	1,320	1,992,817	10,018	(45,367	)	(45,367	)
Timefolio Athleisure Investment Fund	8,139,720	—	8,139,720	5,567	(160,280	)	(160,280	)
COMPA Global Scale-Up Fund No.3	3,266,256	—	3,266,256	8,701	(67,744	)	(67,744	)
AKK Robotech Valueup New Technology Investment Fund	22,650,742	5,500	22,645,242	2,975,886	2,545,242		2,545,242
YG MCE PROJECT No.1 Fund	5,316,511	—	5,316,511	2,202	(83,489	)	(83,489	)
HI YG Win-win Fund No.2	9,568,040	—	9,568,040	4,109	(131,960	)	(131,960	)
KB-CJ Venture Fund 1st	4,333,360	1,493	4,331,867	33,521	(168,133	)	(168,133	)
Elohim-Bilanx aerospace No.1 Fund	9,451,403	5,281	9,446,122	2,146	(103,878	)	(103,878	)
KB-SUSUNG 2nd Investment Fund	15,648,898	—	15,648,898	42,634	(151,102	)	(151,102	)
IMM global Secondary 1-1 Equity Private Fund	9,503,209	489,912	9,013,297	2,317,566	2,244,785		2,244,785
LIB Material Investment Fund	5,786,900	—	5,786,900	33	(19,095,757	)	(19,095,757	)
NOVORSEC-SJG Consumer Secondary Fund	6,949,377	—	6,949,377	7,076	(50,623	)	(50,623	)
KBSBI Global High-tech Strategic Private Equity Investment Limited Partnership	30,205,065	575,425	29,629,640	1,868	(1,416,360	)	(1,416,360	)
KB-Cyrus Tourism Venture Fund	5,276,727	—	5,276,727	4,805	(123,273	)	(123,273	)
IBKS Design Fund	4,291,749	—	4,291,749	121	(8,251	)	(8,251	)
NICE DATA INTELLIGENCE VENTURE FUND	4,240,923	—	4,240,923	40	(9,077	)	(9,077	)
Pectus Hanwha Fund No.2	6,631,425	330	6,631,095	330	(168,905	)	(168,905	)
Korea Environment Technology Co., LTD	232,104,396	54,581,324	177,523,072	63,023,649	21,181,267		21,181,267
KB-IMM Newstar Real Estate Private Fund 1	53,735,524	109,604	53,625,920	2,680,690	2,448,920		2,448,920

Summarized financial information of associates for which financial information is not available as at December 31, 2024 are excluded.

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

The fair value of marketable Investments in associates as at December 31, 2025 and 2024, are as follows:


(in thousands of Korean won)	2025
	Market value		Carrying amount
KB Special Purpose Acquisition Company No.25		10,500		10,165
KB Special Purpose Acquisition Company No.27		10,325		10,460
KB Special Purpose Acquisition Company No.29		20,800		20,367
KB Special Purpose Acquisition Company No.30		20,450		19,930
KB Special Purpose Acquisition Company No.31		20,150		20,046
KB Special Purpose Acquisition Company No.32		20,050		19,599
KB Special Purpose Acquisition Company No.33		168,895		169,648
KB Star REIT		86,665,798		61,508,907

		86,936,968		61,779,122


(in thousands of Korean won)	2024
	Market value		Carrying amount
KB Special Purpose Acquisition Company No.21		20,800		20,894
KB Special Purpose Acquisition Company No.25		10,200		9,965
KB Special Purpose Acquisition Company No.26		10,675		9,836
KB Special Purpose Acquisition Company No.27		9,745		10,236
KB Special Purpose Acquisition Company No.28		10,475		9,645
KB Special Purpose Acquisition Company No.29		19,910		19,982
KB Special Purpose Acquisition Company No.30		20,050		19,518
KB Special Purpose Acquisition Company No.31		19,260		22,618
KB Star REIT		105,898,645		98,600,791
Korea Environment Technology Co., LTD		109,409,121		107,427,843

		215,428,881		206,151,328

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

10. Loans Measured at Amortised Cost

The details of loans measured at amortised cost as at December 31, 2025 and 2024, are as follows:


	2025
(in thousands of Korean won)	Total amount			Allowances			Book amount
Retails
Broker’s loans		4,293,559,258			(6,163,088	)		4,287,396,170
Loans to employees		37,762,930			(810	)		37,762,120
Present value discount		—			—			—

		4,331,322,188			(6,163,898	)		4,325158,290

Corporates
Broker’s loans		283,252,086			—			283,252,086
Securities purchased under repurchase agreements		1,832,100,000			—			1,832,100,000
Loans receivable		4,427,308,949			(262,832,584	)		4,164,476,365
Purchased loans		28,248,225			(332,553	)		27,915,672
Advances for customers		6,842,141			(6,842,141	)		—
Privately placed bonds		39,450,000			(33,303,180	)		6,146,820
Financial lease receivables		16,555,000			—			16,555,000
Net deferred origination fees and costs		(6,715,327	)		—			(6,715,327	)
Present value discount		(612,371	)		—			(612,371	)

		6,626,428,703			(303,310,458	)		6,323,118,245

		10,957,750,891			(309,474,356	)		10,648,276,535


	2024
(in thousands of Korean won)	Total amount			Allowances			Book amount
Retails
Broker’s loans		2,917,855,002			(6,513,007	)		2,911,341,995
Loans to employees		23,854,419			—			23,854,419
Present value discount		—			—			—

		2,941,709,421			(6,513,007	)		2,935,196,414

Corporates
Broker’s loans		223,118,048			—			223,118,048
Securities purchased under repurchase agreements		2,091,017,404			—			2,091,017,404
Loans receivable		5,449,079,686			(185,654,487	)		5,263,425,199
Purchased loans		56,718,382			(388,518	)		56,329,864
Advances for customers		7,465,522			(7,465,522	)		—
Privately placed bonds		52,762,000			(32,598,148	)		20,163,852
Financial lease receivables		23,129,979			—			23,129,979
Net deferred origination fees and costs		(5,130,850	)		—			(5,130,850	)
Present value discount		(1,407,028	)		—			(1,407,028	)

		7,896,753,143			(226,106,675	)		7,670,646,468

		10,838,462,564			(232,619,682	)		10,605,842,882

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

The changes in book amount of loans measured at amortised cost for the years ended December 31, 2025 and 2024, are as follows:


(in thousands of Korean won)	2025
	Retails									Corporates
	The financial instruments applying 12-month expected credit losses		The financial instruments applying lifetime expected credit losses					The financial instruments applying credit loss model		The financial instruments applying 12-month expected credit losses			The financial instruments applying lifetime expected credit losses						The financial instruments applying credit loss model
			Non-impaired		Impaired								Non-impaired			Impaired
Beginning		2,935,196,415		—		6,513,006			—		7,050,884,447			768,517,308			77,351,388			—
Transfer between stages
Transfer to 12-month expected credit Losses		—		—		—			—		—			—			—			—
Transfer to lifetime expected credit Losses (Non-impaired)		—		—		—			—		(82,075,000	)		82,075,000			—			—
Transfer to lifetime expected credit Losses (impaired)		—		—		—			—		(1,975,000	)		(73,000,000	)		74,975,000			—
Write-off		—		—		—			—		—			—			(623,381	)		—
Sales		—		—		—			—		(150,241,156	)		—			—			—
Other changes (execution, recover, etc.)		1,389,962,686		—		(349,919	)		—		(750,644,480	)		(361,137,968	)		(7,677,455	)		—

Ending		4,325,159,101		—		6,163,087			—		6,065,948,811			416,454,340			144,025,552			—


(in thousands of Korean won)	2024
	Retails									Corporates
	The financial instruments applying 12-month expected credit losses			The financial instruments applying lifetime expected credit losses				The financial instruments applying credit loss model		The financial instruments applying 12-month expected credit losses			The financial instruments applying lifetime expected credit losses						The financial instruments applying credit loss model
				Non-impaired		Impaired							Non-impaired			Impaired
Beginning		3,391,164,084			—		6,005,059		—		6,881,077,809			256,133,543			59,627,383			—
Transfer between stages
Transfer to 12-month expected credit Losses		—			—		—		—		46,000,000			(46,000,000	)		—			—
Transfer to lifetime expected credit Losses (Non-impaired)		—			—		—		—		(633,108,115	)		633,108,115			—			—
Transfer to lifetime expected credit Losses (impaired)		—			—		—		—		(22,825,440	)		(10,000,000	)		32,825,440			—
Write-off		—			—		—		—		—			—			(2,069,426	)		—
Sales		—			—		—		—		(577,401,682	)		—			—			—
Other changes (execution, recover, etc.)		(455,967,669	)		—		507,947		—		1,357,141,875			(64,724,350	)		(13,032,009	)		—

Ending		2,935,196,415			—		6,513,006		—		7,050,884,447			768,517,308			77,351,388			—

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

The changes in allowances for loan losses for the years ended December 31, 2025 and 2024, are as follows:


(in thousands of Korean won)	2025
	Retails									Corporates
	The financial instruments applying 12-month expected credit losses		The financial instruments applying lifetime expected credit losses					The financial instruments applying credit loss model		The financial instruments applying 12-month expected credit losses			The financial instruments applying lifetime expected credit losses						The financial instruments applying credit loss model
			Non-impaired		Impaired								Non-impaired			Impaired
Beginning		—		—		6,513,007			—		82,243,114			77,737,715			66,125,846			—
Transfer between stages
Transfer to 12-month expected credit Losses		—		—		—			—		—			—			—			—
Transfer to lifetime expected credit Losses (Non-impaired)		—		—		—			—		—			—			—			—
Transfer to lifetime expected credit Losses (impaired)		—		—		—			—		(143,110	)		(8,126,981	)		8,270,091			—
Write-off		—		—		—			—		—			—			(623,381	)		—
Recovery of write-off loans		—		—		—			—		—			—			(290,634	)		—
Sale		—		—		—			—		(360,673	)		—			—			—
Provision (Reversal)		810		—		—			—		8,303,081			41,858,670			32,383,088			—
Other transfer (changes in for FX rate, etc.)		—		—		(349,919	)		—		(3,447,630	)		(909,372	)		290,634			—

Ending		810		—		6,163,088			—		86,594,782			110,560,032			106,155,644			—


(in thousands of Korean won)	2024
	Retails								Corporates
	The financial instruments applying 12-month expected credit losses		The financial instruments applying lifetime expected credit losses				The financial instruments applying credit loss model		The financial instruments applying 12-month expected credit losses			The financial instruments applying lifetime expected credit losses						The financial instruments applying credit loss model
			Non-impaired		Impaired							Non-impaired			Impaired
Beginning		—		—		6,005,060		—		60,396,218			84,100,465			24,560,199			—
Transfer between stages
Transfer to 12-month expected credit Losses		—		—		—		—		3,154,307			(3,154,307	)		—			—
Transfer to lifetime expected credit Losses (Non-impaired)		—		—		—		—		(16,884,362	)		16,884,362			—			—
Transfer to lifetime expected credit Losses (impaired)		—		—		—		—		(72,220	)		(1,539,108	)		1,611,328			—
Write-off		—		—		—		—		—			—			(2,069,426	)		—
Sale		—		—		—		—		(1,738,460	)		—			—			—
Provision (Reversal)		—		—		—		—		47,203,871			(25,219,828	)		33,788,956			—
Execution of the contract		—		—		—		—		—			6,666,529			8,234,789			—
Other transfer (changes in for FX rate, etc.)		—		—		507,947		—		(9,816,240	)		(398	)		—			—

Ending		—		—		6,513,007		—		82,243,114			77,737,715			66,125,846			—

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

Among the loans which have been written-off, the Group manages loans for which the claims against borrowers have not been lost due to reasons such as incomplete extinctive prescription pursuant to relevant laws and uncollected receivables after writing-off, as the written-off loans. As at December 31, 2025 and 2024, the balances of the written-off loans are W 31,293,471 thousand and W 23,256,163 thousand, respectively.

Broker’s loan

The Group provides loans for stock purchases with credit period of 180 days (can be extended for six times) for investors using margin transaction. As at December 31, 2025, interest rate of the loan is differentiated from 5.2% to 9.3% based on maturities, and overdue interest rate is 9.9%.

Also, as the Group operates loans secured by securities. At the initial transaction, in case of superior shares and common shares, the Group requires trading securities or cash as collateral, corresponding to 167% and 250% of the loan, respectively. Over 140% collateral of the loan is required. As at December 31, 2025, the interest rate of loans secured by securities is differentiated from Annual Percentage Rate (APR) 6.9% to 9.3% based on maturities, from APR 7.3% to 8.8% based on credit rating, and the loan with past due date is 9.9%.

For margin loans to customers, trading securities or cash is required to be pledged corresponding to 140% of the loan. Because of this condition, the Group pledged securities as collateral which are purchased with the margin loans. If the value of the pledged securities do not reach to 140% of the loan, the Group requires additional cash or trading securities as collateral.

Advances for Customers

Advances for customers consist of advanced payments on loss compensation and advanced payments for others.

Advanced payments on loss compensation are the monetary amount of claim for reimbursement, paid by the Group, if any losses from embezzlement and arbitrary trading are occurred.

Advanced payments for others consist of two types. The first type is the amount of recourse from paid Investor Protection Fund based on the previous Securities Exchange Act Article 69 Clause 2 or Clause 4. This recourse is driven by preferred payments to the securities company with reasonable reason for taking the preferred payments. The second type is the amount of recourse from Joint Compensation Fund based on Law relating to the Financial Investment Services and Capital Markets Act Article 323 Clause 14 and related Enforcement Decree Article 318 Clause 8. This recourse is driven by preferred payments to the securities company that occurred reasonable reasons for taking the preferred payments.

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

11.

Property and Equipment

The details of property and equipment as at December 31, 2025 and 2024, are as follows:


	2025
(in thousands of Korean won)	Acquisition cost		Accumulated depreciation			Accumulated revaluation		Book amount
Land		24,694,778		—			77,441,935		102,136,713
Buildings		47,823,084		(24,563,685	)		—		23,259,399
Vehicles		972,676		(393,718	)		—		578,958
Furniture and equipment		215,122,367		(182,713,110	)		—		32,409,257
Others		70,248,449		(52,979,843	)		—		17,268,606
Right-of-use assets		212,984,799		(142,504,775	)		—		70,480,024

		571,846,153		(403,155,131	)		77,441,935		246,132,957


	2024
(in thousands of Korean won)	Acquisition cost		Accumulated depreciation			Accumulated revaluation		Book amount
Land		24,968,018		—			83,580,757		108,548,775
Buildings		43,177,253		(21,066,922	)		—		22,110,331
Vehicles		1,111,482		(422,830	)		—		688,652
Furniture and equipment		204,408,789		(168,536,319	)		—		35,872,470
Others		64,523,074		(48,750,085	)		—		15,772,989
Right-of-use assets		205,617,817		(124,045,980	)		—		81,571,837

		543,806,433		(362,822,136	)		83,580,757		264,565,054

The details of right-of-use assets as at December 31, 2025 and 2024, are as follows:


	2025
(in thousands of Korean won)	Acquisition cost		Accumulated depreciation			Book amount
Buildings		202,537,391		(137,413,448	)		65,123,943
Vehicles		4,432,343		(2,633,596	)		1,798,747
Others		6,015,065		(2,457,731	)		3,557,334

		212,984,799		(142,504,775	)		70,480,024


	2024
(in thousands of Korean won)	Acquisition cost		Accumulated depreciation			Book amount
Buildings		197,166,055		(118,804,496	)		78,361,559
Vehicles		4,085,292		(2,526,905	)		1,558,387
Others		4,366,469		(2,714,578	)		1,651,891

		205,617,816		(124,045,979	)		81,571,837

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

The changes in property and equipment for the years ended December 31, 2025 and 2024, are as follows:


	2025
(in thousands of Korean won)	Beginning balance		Acquisition		Disposal			Depreciation			Others ¹			Ending balance
Land		108,548,775		2,005,290		(10,983,844	)		—			2,566,492			102,136,713
Buildings		22,110,331		1,379,167		—			(2,637,275	)		2,407,176			23,259,399
Vehicles		688,652		—		(68,118	)		(92,865	)		51,289			578,958
Furniture and equipment		35,872,470		13,570,526		(317,999	)		(16,397,838	)		(317,902	)		32,409,257
Others		15,772,989		8,365,748		(4,214	)		(7,021,469	)		155,552			17,268,606
Right-of-use assets		81,571,837		17,921,689		(763,155	)		(29,995,859	)		1,745,512			70,480,024

		264,565,054		43,242,420		(12,137,330	)		(56,145,306	)		6,608,119			246,132,957

¹	Others consist of reclassification to investment properties, foreign exchange differences and others.


	2024
(in thousands of Korean won)	Beginning balance		Acquisition		Disposal			Depreciation			Others ¹			Ending balance
Land		111,950,474		—		—			—			(3,401,699	)		108,548,775
Buildings		25,600,365		1,884,571		—			(2,577,888	)		(2,796,717	)		22,110,331
Vehicles		737,884		—		(115,430	)		(82,494	)		148,692			688,652
Furniture and equipment		34,251,838		17,295,888		(895,755	)		(15,194,265	)		414,764			35,872,470
Others		11,838,618		10,400,418		(99,865	)		(6,371,046	)		4,864			15,772,989
Right-of-use assets		70,761,650		39,307,962		(1,174,990	)		(28,253,667	)		930,882			81,571,837

		255,140,829		68,888,839		(2,286,040	)		(52,479,360	)		(4,699,214	)		264,565,054

¹	Others consist of reclassification to investment properties, foreign exchange differences and others.

The changes in right-of-use assets for the year ended December 31, 2025 and 2024, are as follows:


	2025
(in thousands of Korean won)	Beginning balance		Acquisition		Disposal			Depreciation			Others ¹		Ending balance
Buildings		78,361,559		13,037,484		(373,581	)		(27,491,861	)		1,590,342		65,123,943
Vehicles		1,558,386		1,974,288		(389,574	)		(1,390,454	)		46,101		1,798,747
Others		1,651,892		3,003,446		—			(1,113,544	)		15,540		3,557,334

		81,571,837		18,015,218		(763,155	)		(29,995,859	)		1,651,983		70,480,024

¹	Others consist of foreign exchange differences and others.

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024


	2024
(in thousands of Korean won)	Beginning balance		Acquisition		Disposal			Depreciation			Others ¹			Ending balance
Buildings		66,674,422		47,126,387		(799,115	)		(25,889,842	)		(8,750,293	)		78,361,559
Vehicles		1,690,835		1,657,667		(416,583	)		(1,326,898	)		(46,634	)		1,558,387
Others		2,396,393		308,090		—			(1,036,927	)		(15,665	)		1,651,891

		70,761,650		49,092,144		(1,215,698	)		(28,253,667	)		(8,812,592	)		81,571,837

¹	Others consist of foreign exchange differences and others.

The Group applies the revaluation model in relation to the measurement after the initial recognition of the land and the date of revaluation of the land was August 5, 2022. The Group used the assessed price provided by a qualified appraiser for the revaluation of the land.

The land was measured using sales value of similar land, and the access condition, environment condition and other specific factors are considered when the value is adjusted. There is no change in the valuation technique for the year ended December 31, 2025.

Classification of land that is measured at fair value by fair value hierarchy levels as at December 31, 2025 and 2024, are as follows:

2025

(in thousands of Korean won)

Level 1

Level 2

Level 3

Total

Land

—

102,136,713

,2024

(in thousands of Korean won)

Level 1

Level 2

Level 3

Total

Land

—

108,548,775

Changes in land which is classified to Level 3 for the years ended December 31, 2025 and 2024, are as follows:


(in thousands of Korean won)	2025			2024
Beginning balance		108,548,775			111,950,474
Reclassification from investment properties to property and equipment		2,566,492			—
Reclassification from property and equipment to investment properties		—			(3,401,699	)
Acquisition		2,005,290			—
Disposal		(10,983,844	)		—

Ending balance		102,136,713			108,548,775

Book amounts of land under cost model as at December 31, 2025 and 2024, are as follows:

2025

2024

(in thousands of Korean won)

Under

revaluation model

Under

cost model

Under

revaluation model

Under

cost model

Land

102,136,713

24,694,778

108,548,775

24,968,018

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

Changes in other comprehensive income related to the revaluation for the year ended December 31, 2025 and 2024, are as follows:


	2025
(in thousands of Korean won)	Beginning balance			Reclassification			Decrease due to disposal, etc.			Ending balance
Land		84,032,663			(848,457	)		(5,290,365	)		77,893,841
Income tax effects		(22,282,377	)		—			763,817			(21,518,560	)

		61,750,286			(848,457	)		(4,526,548	)		56,375,281



	2024
(in thousands of Korean won)	Beginning balance			Other Change		Ending balance
Land		84,032,665			—		84,032,665
Income tax effects		(22,282,379	)		—		(22,282,379	)

		61,750,286			—		61,750,286

12. Investment Properties

The details of investment properties as at December 31, 2025 and 2024, are as follows:


	2025
(in thousands of Korean won)	Acquisition cost		Accumulated depreciation			Accumulated impairment			Accumulated revaluation		Book amount
Land		45,793,361		—			(6,865,414	)		255,815		39,183,762
Buildings		109,305,810		(21,632,858	)		(14,553,087	)		—		73,119,865

		155,099,171		(21,632,858	)		(21,418,501	)		255,815		112,303,627


	2024
(in thousands of Korean won)	Acquisition cost		Accumulated depreciation			Accumulated impairment			Accumulated revaluation		Book amount
Land		283,406,057		—			(332,250	)		—		283,073,807
Buildings		160,308,605		(23,929,999	)		—			—		136,378,606

		443,714,662		(23,929,999	)		(332,250	)		—		419,452,413

The changes in investment properties for the years ended December 31, 2025 and 2024, are as follows:


	2025
(in thousands of Korean won)	Beginning balance		Acquisition		Disposal ¹			Depreciation			Impairment			Others ²			Ending balance
Land		283,073,807		—		(234,458,139	)		—			(6,865,414	)		(2,566,492	)		39,183,762
Buildings		136,378,606		—		(42,281,239	)		(3,467,850	)		(14,553,087	)		(2,956,565	)		73,119,865

		419,452,413		—		(276,739,378	)		(3,467,850	)		(21,418,501	)		(5,523,057	)		112,303,627

¹	It includes investment properties amount to W 276,297,454 thousand held by subsidiaries excluded from the consolidation during the year ended December 31, 2025.

²	Others consist of foreign exchange differences and transfer from/to property and equipment.

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024


	2024
(in thousands of Korean won)	Beginning balance		Acquisition		Disposal ¹			Depreciation			Impairment		Others ²		Ending balance
Land		431,082,024		—		(151,833,802	)		—			—		3,825,585		283,073,807
Buildings		185,840,323		—		(53,226,932	)		(4,406,269	)		—		8,171,484		136,378,606

		616,922,347		—		(205,060,734	)		(4,406,269	)		—		11,997,069		419,452,413

¹	It included investment properties amount to 167,353,980 thousand held by subsidiaries excluded from the consolidation during the year ended December 31, 2024.

²	Others consist of foreign exchange differences and transfer from/to property and equipment.

Details of income and expenditure on investment properties for the years ended December 31, 2025 and 2024, are as follows:


(in thousands of Korean won)	2025			2024
Rental income		12,173,919			18,893,181
Expenditure on operating investment properties		(9,013,054	)		(14,431,151	)
Expenditure on non-operating investment properties		(59	)		—

		3,160,806			4,462,030

Details of fair value of investment properties as at December 31, 2025 and 2024, are as follows:


	2025				2024
(in thousands of Korean won)	Book amount		Fair value		Book amount		Fair value
Land		39,183,762		78,407,423		283,073,807		321,994,864
Buildings		73,119,865		101,248,181		136,378,606		150,845,041

		112,303,627		179,655,604		419,452,413		472,839,905

The fair values of investment properties as at December 31, 2025 was evaluated by an independent appraiser. The independent appraiser has appropriate qualification and experience in evaluating real estate in the location of investment properties.

The fair value of investment property was measured by using benchmark price of similar properties and discounted cash flow (DCF) method. The fair value of investment property measured by DCF method is assessed by discounting net cash flow from investment property with risk adjusted discount rate, reflecting expected growth rate of rent market, period of empty, proportion of rent, period without rent charge and other cost related to promotion for rent. The factors which are significant but non-observable inputs for fair valuation are expected growth rate of rent market, period of empty, proportion of rent, period without rent charge and risk adjusted discount rate.

The fair value of investment property measured by using sales value of similar land is calculated by analyzing and comparing the sale prices of similar land, and also the access condition, environment condition and other specific factors for the purpose of estimation for fair value are considered.

The fair values of investment properties are classified as Level 3 based upon the inputs, which are used in valuation method.

There is no significant change in the valuation technique for the year ended December 31, 2025.

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

Details of investment properties provided as collaterals as at December 31, 2025 and 2024 is as follows:


	2025
(in thousands of Korean won)	Secured amount		Secured party	Details
Land and buildings		25,022,287	Kookmin Bank

		18,285,517	Shinhan Bank

		14,435,935	Hana Bank		Collateralized borrowing

		2,887,187	Bukok branch of Uiwang Nonghyup

		1,924,791	Dodram Pig Farmers Cooperative

		962,396	Jeju Pig Farm Livestock Cooperative

		1,924,791	Suncheon Nonghyup

		1,924,791	Singimpo Nonghyup


	2024
(in thousands of Korean won)	Secured amount		Secured party	Details
Land and buildings		95,628,080	Hanhwa Life Insurance

		38,251,232	Tongyang Life Insurance

		36,338,670	Lotte Capital

		23,907,020	Kyobo Life Insurance

		22,992,136	Kookmin Bank

		16,801,945	Shinhan Bank

		13,264,694	Hana Bank		Collateralized borrowing

		2,652,939	Bukok branch of Uiwang Nonghyup

		1,768,626	Dodram Pig Farmers Cooperative

		884,313	Jeju Pig Farm Livestock Cooperative

		1,768,626	Suncheon Nonghyup

		1,768,626	Singimpo Nonghyup

		2,400,000	Singimpo Nonghyup

Investment properties are provided as collaterals for rental deposits and lease hold right, which amounts to W 610,000 thousand and W 610,000 thousand as at December 31, 2025 and 2024, respectively.

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

13. Intangible Assets

The details of intangible assets as at December 31, 2025 and 2024, are as follows:


	2025
(in thousands of Korean won)	Acquisition cost		Accumulated amortization			Accumulated impairment			Book amount
Goodwill		84,406,666		—			—			84,406,666
Development costs		345,985,097		(257,483,826	)		—			88,501,271
Software		140,489,023		(125,352,899	)		—			15,136,124
Memberships		43,384,790		(283,546	)		(6,732,591	)		36,368,653
Others		23,294,717		—			—			23,294,717

		637,560,293		(383,120,271	)		(6,732,591	)		247,707,431


	2024
(in thousands of Korean won)	Acquisition cost		Accumulated amortization			Accumulated impairment			Book amount
Goodwill		85,940,206		—			—			85,940,206
Development costs		312,698,214		(209,465,882	)		—			103,232,332
Software		136,334,647		(115,218,996	)		(1,036,376	)		20,079,275
Memberships		44,946,885		(277,321	)		(7,203,010	)		37,466,554
Others		23,294,717		—			—			23,294,717

		603,214,669		(324,962,199	)		(8,239,386	)		270,013,084

The changes in intangible assets for the years ended December 31, 2025 and 2024, are as follows:


	2025
(in thousands of Korean won)	Beginning balance		Acquisition ¹		Disposal			Amortization			Impairment ²			Reversal of Impairment ³		Others ⁴			Ending balance
Goodwill		85,940,206		—		—			—			—			—		(1,533,540	)		84,406,666
Development costs		103,232,332		33,286,883		—			(48,017,944	)		—			—		—			88,501,271
Software		20,079,275		5,565,827		(3,250	)		(10,449,618	)		—			—		(56,110	)		15,136,124
Memberships		37,466,554		—		(1,214,941	)		(9,584	)		(265,526	)		393,000		(850	)		36,368,653
Others		23,294,717		—		—			—			—			—		—			23,294,717

		270,013,084		38,852,710		(1,218,191	)		(58,477,146	)		(265,526	)		393,000		(1,590,500	)		247,707,431

¹	Advance payments and others transferred from other accounts are included.

²	Memberships are composed of condominium and golf memberships, which are intangible assets with indefinite useful lives. The Group recognized a impairment loss because the market price of the asset is lower than book amount as at December 31, 2025.

³	Memberships are composed of condominium and golf memberships, which are intangible assets with indefinite useful lives. The Group recognized a reversal of impairment loss because the market price of the asset is higher than book amount as at December 31, 2025.

⁴	Others consist of foreign exchange differences and others.

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024


	2024
(in thousands of Korean won)	Beginning balance		Acquisition ¹		Disposal			Amortization			Impairment ²			Reversal of Impairment ³		Others ⁴		Ending balance
Goodwill		83,778,170		—		—			—			—			—		2,162,036		85,940,206
Development costs		104,399,311		40,991,592		—			(42,158,571	)		—			—		—		103,232,332
Software		26,148,342		7,357,584		(24,996	)		(12,513,083	)		(1,036,376	)		—		147,804		20,079,275
Memberships		34,675,737		2,887,619		(970,900	)		(20,606	)		(128,738	)		1,019,296		4,146		37,466,554
Others		23,294,717		—		—			—			—			—		—		23,294,717

		272,296,277		51,236,795		(995,896	)		(54,692,260	)		(1,165,114	)		1,019,296		2,313,986		270,013,084

¹	Advance payments and others transferred from other accounts are included.

²	Memberships are composed of condominium and golf memberships, which are intangible assets with indefinite useful lives. The Group recognized a impairment loss because the market price of the asset is lower than book amount as at December 31, 2024.

³	Memberships are composed of condominium and golf memberships, which are intangible assets with indefinite useful lives. The Group recognized a reversal of impairment loss because the market price of the asset is higher than book amount as at December 31, 2024.

⁴	Others consist of foreign exchange differences and others.

14. Other Financial Assets

The details of other financial assets as at December 31, 2025 and 2024, are as follows:


(in thousands of Korean won)	2025			2024
Other receivables		5,646,643,059			2,061,323,408
Accrued income		382,898,196			308,011,193
Accrued interest on bonds		172,967,452			295,740,833
Guarantee deposits		63,371,824			62,846,557
Other		110,787,473			137,520,223
Provision for other financial assets		(52,702,623	)		(51,685,257	)

		6,323,965,381			2,813,756,957

15. Other Assets

The details of other assets as at December 31, 2025 and 2024, are as follows:


(in thousands of Korean won)	2025		2024
Other receivables		195,150,962		—
Advance payments		57,923,580		41,944,463
Prepaid expenses		111,176,532		135,338,953
Prepaid value-added taxes		338,057		368,207
Others		26,446,795		13,406,609

		391,035,926		191,058,232

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

16. Deposit Liabilities

The details of deposit liabilities as at December 31, 2025 and 2024, are as follows:


(in thousands of Korean won)	2025		2024
Customers’ deposits
Customers’ deposits for brokerage		8,542,825,436		5,773,748,168
Customers’ deposits for exchange-traded derivatives trading		637,491,603		438,187,733
Customers’ deposits for subscription		—		—
Customers’ deposits for savings		17,247,349		6,997,054
Customers’ deposits for repo		61,456		61,541
Customers’ deposits for the investor of collective investment securities		652,343,006		456,285,969
Others		80,017		7,780

		9,850,048,867		6,675,288,245

Guarantee deposits
Guarantee deposits in foreign currency		1,529,562,995		680,406,569
Guarantee deposits in Korean won		731,162,021		370,164,013

		2,260,725,016		1,050,570,582

		12,110,773,883		7,725,858,827

17. Borrowings

The details of borrowings as at December 31, 2025 and 2024, are as follows:


(in thousands of Korean won)	2025			2024
Call money		1,290,000,000			820,000,000
Borrowings:
Borrowing from banks		647,398,189			346,270,177
Borrowing from KSFC		1,465,834,076			1,264,581,631
Asset-backed short-term bonds		2,238,362,671			2,767,930,379
CP borrowings		5,800,000,000			5,000,000,000
Others		105,252,357			247,783,272
Securities sold under repurchase agreements		10,719,460,118			9,419,893,685
Short-term note issued		10,943,325,311			10,130,450,816
Debentures:
Debentures		4,620,670,000			3,463,100,000
Less: discount on debentures issued		(6,865,709	)		(5,408,576	)

		37,823,437,013			33,454,601,384

The details of call money as at December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)

Interest rate (%)

2025

2024

Kiwoom Asset Management Co., Ltd. and others

2.60~2.90

1,290,000,000

820,000,000

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

The details of borrowings as at December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)

Interest
rate (%)

2025

2024

Borrowings from banks

Kookmin Bank and other

0.00~7.70

647,398,189

346,270,177

Borrowings from KSFC

KSFC

2.73~2.94

1,465,834,076

1,264,581,631

Asset-backed short-term bonds

SK Securities co., Ltd., and other

2.00~7.00

2,238,362,671

2,767,930,379

CP borrowings

Hyundai Motor Securities Co., Ltd.and others

2.58~3.20

5,800,000,000

5,000,000,000

Others

KFCC and others

2.00~6.90

105,252,357

247,783,272

10,256,847,293

9,626,565,459

The details of securities sold under repurchase agreements as at December 31, 2025 and 2024, are as follows:


(in thousands of Korean won)	Interest rate (%)		2025		2024
Customers		0.00~4.80		6,693,960,118		5,913,024,606
Financial institution		2.40~2.68		4,025,500,000		3,506,869,079

				10,719,460,118		9,419,893,685

The details of short-term note issued as at December 31, 2025 and 2024, are as follows:


(in thousands of Korean won)	Interest rate (%)		2025		2024
Individual		2.00~5.00		5,965,341,642		6,149,462,845
Corporate		2.00~4.50		4,977,983,669		3,980,987,971

				10,943,325,311		10,130,450,816

The details of debentures as at December 31, 2025 and 2024, are as follows:


(in thousands of Korean won)	Date issued		Maturity		Interest rate (%)	2025		2024
The 39-2nd unsecured public debenture		2021.03.04		2026.03.04	1.70		120,000,000		120,000,000
The 40-2nd unsecured public debenture		2021.04.23		2026.04.23	1.94		200,000,000		200,000,000
The 41-1st unsecured public debenture		2023.02.07		2025.02.07	3.88		—		330,000,000
The 41-2nd unsecured public debenture		2023.02.07		2026.02.06	3.85		210,000,000		210,000,000
The 42-1st unsecured public debenture		2023.06.26		2025.06.26	4.39		—		240,000,000
The 42-2nd unsecured public debenture		2023.06.26		2026.06.26	4.43		220,000,000		220,000,000
The 43-1st unsecured public debenture		2024.01.31		2025.07.31	3.94		—		160,000,000
The 43-2nd unsecured public debenture		2024.01.31		2026.01.30	3.94		230,000,000		230,000,000
The 43-3rd unsecured public debenture		2024.01.31		2027.01.29	3.98		410,000,000		410,000,000
The 44-1st unsecured public debenture		2024.04.23		2025.10.23	3.79		—		100,000,000

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024


The 44-2nd unsecured public debenture	2024.04.23	2026.04.23	3.82	100,000,000		100,000,000
The 44-3rd unsecured public debenture	2024.04.23	2027.04.23	3.86	200,000,000		200,000,000
The 45-1st unsecured public debenture	2024.09.03	2026.09.03	3.56	220,000,000		220,000,000
The 45-2nd unsecured public debenture	2024.09.03	2027.09.03	3.56	280,000,000		280,000,000
The 2nd unsecured privately placed bond ¹	2024.12.12	2026.06.12	7.10	200,000		2,100,000
The 46-1st unsecured public debenture	2025.02.19	2027.02.19	3.03	120,000,000		—
The 46-2nd unsecured public debenture	2025.02.19	2028.02.18	3.08	450,000,000		—
The 46-3rd unsecured public debenture	2025.02.19	2030.02.19	3.17	230,000,000		—
The 47-1st unsecured public debenture	2025.05.28	2027.05.28	2.72	220,000,000		—
The 47-2nd unsecured public debenture	2025.05.28	2028.05.26	2.76	380,000,000		—
The 48-1st unsecured public debenture	2025.09.09	2030.09.09	2.91	100,000,000		—
The 48-2nd unsecured public debenture	2025.09.09	2028.09.08	2.79	440,000,000		—
The 48-3nd unsecured public debenture	2025.09.09	2027.09.09	2.72	60,000,000		—
The 21-1 public debenture in foreign currency ²	2021.11.01	2026.11.01	2.13	430,470,000		441,000,000

				4,620,670,000		3,463,100,000

Less: Discount on debentures issued				(6,865,709	)	(5,408,576	)

				4,613,804,291		3,457,691,424

¹	This privately placed bond was issued by subsidiary named Able Seun Co., Ltd.

²	The issuance price of this public debenture is US$ 300,000,000.

The changes in borrowings for the years ended December 31, 2025 and 2024, are as follows:


(in thousands of Korean won)	2025			2024
Beginning balance		33,454,601,384			30,640,156,335
Increase(decrease) in call money		470,000,000			(420,000,000	)
Increase(decrease) in borrowings from banks		301,128,012			(307,417,189	)
Increase in borrowings from KSFC		201,252,445			1,761,697
Increase(decrease) in asset-backed short-term bond		(529,567,708	)		422,841,700
Increase in CP borrowings		800,000,000			1,620,000,000
Decrease in other borrowings		(142,530,915	)		(330,866,506	)
Increase in securities sold under repurchase agreements		1,299,566,433			383,796,062
Increase in short-term note issued		812,874,495			542,939,794
Increase in debentures		1,156,112,867			901,389,491

Ending balance		37,823,437,013			33,454,601,384

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

18. Post-employment Benefits

18.1 Defined Benefit Plans

The details of defined benefit liabilities as at December 31, 2025 and 2024, are as follows:


(in thousands of Korean won)	2025			2024
Present value of defined benefit obligations		84,113,110			79,636,084
Fair value of plan assets		(6,037,497	)		(10,971,828	)

Net defined benefit liabilities		78,075,613			68,664,256

The changes in the defined benefit obligation for the years ended December 31, 2025 and 2024, are as follows:


(in thousands of Korean won)	2025			2024
Beginning balance		79,636,084			75,835,223
Current service cost		23,603,780			22,515,097
Interest cost		2,099,064			2,436,755
Remeasurements
Actuarial gains and losses arising from changes in demographic assumptions		2,888,700			34,904
Actuarial gains and losses arising from changes in financial assumptions		(636,407	)		4,697,042
Actuarial gains and losses arising from experience adjustment		6,353,218			1,480,306
Payments from plans		(2,059,923	)		(1,291,060	)
Payments from the Group		(23,863,456	)		(21,543,795	)
Transfer to related companies		(3,907,950	)		(2,777,338	)
Settlement		—			(1,751,050	)

Ending balance		84,113,110			79,636,084

The changes in the fair value of plan assets for the years ended December 31, 2025 and 2024, are as follows:


(in thousands of Korean won)	2025			2024
Beginning balance		(10,971,828	)		(13,270,798	)
Interest income		(378,524	)		(549,651	)
Remeasurements:
Return on plan assets (excluding amounts included in interest income)		(8,352	)		180,223
Contributions by employers		(500,000	)		(1,400,000	)
Payments from plans:
Benefits paid		2,059,924			1,291,060
Transfer to related companies		3,761,283			2,777,338

Ending balance		(6,037,497	)		(10,971,828	)

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

Plan assets are composed of the detail assets that have no quoted price in active market. The details of plan assets as at December 31, 2025 and 2024, are as follows:


	2025				2024
(in thousands of Korean won)	Fair value		Composition(%)		Fair value		Composition(%)
Cash and deposits		4,949,407		81.98		10,122,822		92.26
Investment funds		1,088,090		18.02		849,006		7.74

		6,037,497		100.00		10,971,828		100.00

Key actuarial assumptions used as at December 31, 2025 and 2024, are as follows:


	2025	2024
Discount rate	DB(including special retirement by salaries peak plan) 3.9% Compensation promotion DC 3.3%	DB(including special retirement by salaries peak plan) 3.6% Compensation promotion DC 3.2%

Expected salary growth rate	DB : executives 4.7% DC: Promotion + Base up 2.8% Special retirement by salaries peak plan: 4.7%	DB : executives 4.8% DC: Promotion + Base up 2.7% Special retirement by salaries peak plan: 4.8%

The sensitivity analysis for significant actuarial assumptions used to determine the present value of the defined benefit obligation as at December 31, 2025, are as follows:


	Effect on the present value of defined benefit obligation
(in thousands of Korean won)	Changes in assumption			Increase			Decrease
Discount rate		0.50	%		(1,787,989	)		1,890,803
Expected salary growth rate¹		0.50	%		1,698,477			(1,611,528	)
Retirement rate		0.50	%		(1,706,156	)		1,795,967

¹	The sensitivity analysis for the expected salary growth rate is limited to special retirement by salaries peak plan and DB.

The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. The sensitivity of the present value of the defined benefit obligation to changes in actuarial assumptions is calculated using the projected unit credit method, the same method applied when calculating the defined benefit obligations.

The methods and assumptions used in preparing the sensitivity analyses did not change compared to the previous period.

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

The effect of defined benefit plan on future cash inflows: Expected maturity analysis of undiscounted pension benefits as at December 31, 2025, is as follows:


(in thousands of Korean won)	Less than 1 year		Between 1 and 2 years		Between 2 and 5 years		Between 5 and 10 years		Over 10 years		Total
Pension benefits¹		7,108,382		11,361,181		30,444,854		32,944,123		64,068,029		145,926,569

¹	Fixed pension benefits of W15,100,000 thousand under promotion compensation defined contribution plan are excluded.

The weighted average duration of the defined benefit obligations is 5.75 years.

Expected contribution to post-employment benefit plans for the year ending December 31, 2026 is W 900,000 thousand.

18.2 Defined Contribution Plans

The Group recognized the expenses of W 8,159,197 thousand and W 4,775,485 thousand for defined contribution plans for the years ended December 31, 2025 and 2024, respectively.

19. Provisions

The details of provisions as at December 31, 2025 and 2024, are as follows:


(in thousands of Korean won)	2025		2024
Provisions for non-financial guarantees		6,462,778		4,363,358
Provisions for asset retirement obligation ¹		9,206,853		9,236,979
Provisions for lawsuits		56,008,858		75,204,159
Provisions for others		38,434,048		48,755,377

		110,112,537		137,559,873

¹	The Group recognized the provision for asset retirement obligation in connection with the leased asset for the expenditures expected to recover the asset.

The changes in provisions for non-financial guarantees for the years ended December 31, 2025 and 2024 are as follows,


	2025
(in thousands of Korean won)	The financial instruments applying 12-month expected credit losses		The financial instruments applying lifetime expected credit losses
			Non-impaired			Impaired
Beginning		4,172,129		191,229			—
Transfer between stages
Transfer to lifetime expected credit Losses		—		—			—
Provision for losses (reversal of provision)		2,290,649		(191,229	)		—
Other transfer (foreign exchange and other)		—		—			—

Ending		6,462,778		—			—

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024


	2024
(in thousands of Korean won)	The financial instruments applying 12-month expected credit losses			The financial instruments applying lifetime expected credit losses
				Non-impaired			Impaired
Beginning		6,218,110			196,724			—
Transfer between stages
Transfer to lifetime expected credit Losses		(274,031	)		274,031			—
Provision for losses (reversal of provision)		(1,771,950	)		(279,526	)		—
Other transfer(foreign exchange and other)		—			—			—

Ending		4,172,129			191,229			—

The changes in other provisions for the years ended December 31, 2025 and 2024, are as follows:


	2025
(in thousands of Korean won)	Provisions for asset retirement obligation			Provisions for lawsuits			Provisions for others			Total
Beginning		9,236,979			75,204,159			48,755,377			133,196,515
Contribution		214,584			33,784,354			7,452,000			41,450,938
Reversal		(28,790	)		(25,038,145	)		(7,350,798	)		(32,417,733	)
Use		(253,095	)		(27,941,510	)		(10,422,531	)		(38,617,136	)
Amortization of discounts		37,175			—			—			37,175

Ending		9,206,853			56,008,858			38,434,048			103,649,759


	2024
(in thousands of Korean won)	Provisions for asset retirement obligation			Provisions for lawsuits			Provisions for others			Total
Beginning		9,058,920			111,425,114			86,089,255			206,573,289
Contribution		215,297			12,982,498			25,417,147			38,614,942
Reversal		—			(34,099,212	)		(4,600,000	)		(38,699,212	)
Use		(87,527	)		(15,104,241	)		(58,151,025	)		(73,342,793	)
Amortization of discounts		50,289			—			—			50,289

Ending		9,236,979			75,204,159			48,755,377			133,196,515

20. Other Financial Liabilities

The details of other financial liabilities as at December 31, 2025 and 2024, are as follows:


(in thousands of Korean won)	2025		2024
Other payables		5,447,665,459		1,803,355,494
Accrued expenses		174,096,393		173,026,055
Financial guarantee liabilities		2,792,624		4,888,161
Provisions for financial guarantee contracts		245,001		—
Leasehold deposits received		10,555,100		15,879,109
Non-controlling liabilities		45,692,550		53,722,980
Lease liabilities		92,480,438		110,565,255
Others		87,612,541		49,015,525

		5,861,140,106		2,210,452,579

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

The changes in liabilities of the provisions for financial guarantee contracts for the years ended December 31, 2025 and 2024 are as follows:


(in thousands of Korean won)	2025
	The financial instruments applying 12-month expected credit losses			The financial instruments applying lifetime expected credit losses
				Non-impaired		Impaired
Beginning		—			—		—
Provision		1,070,001			—		—
Other transfer (foreign exchange and other)		(825,000	)		—		—

Ending		245,001			—		—


(in thousands of Korean won)	2024
	The financial instruments applying 12-month expected credit losses			The financial instruments applying lifetime expected credit losses
				Non-impaired		Impaired
Beginning		142,308			—		—
Provision		14,759,010			—		—
Other transfer (foreign exchange and other)		(14,901,318	)		—		—

Ending		—			—		—

21. Other Liabilities

The details of other liabilities as at December 31, 2025 and 2024, are as follows:


(in thousands of Korean won)	2025		2024
Accounts payables		—		7,162,892
Accrued expenses		342,617,781		288,909,701
Accrued dividends		1,386,111		1,366,645
Advances from customers		13,906,331		7,819,439
Unearned revenue		40,324,441		26,427,136
Taxes withheld		96,187,722		58,844,142
Other long-term employee benefits		6,600,261		7,244,299
Others		11,434,108		12,413,869

		512,456,755		410,188,123

22. Share Capital

The details of share capital as at December 31, 2025 and 2024, are as follows:

(in thousands of Korean won except per share)

Authorized shares

Outstanding shares

Par value

per share

2025

2024

Ordinary share

1,000,000,000
shares

298,620,424

5,000
won

1,493,102,120

There are no changes in ordinary shares for the years ended December 31, 2025 and 2024.

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

After the year ended December 31, 2025, in February 2026, the Group issued 33,333,333 common shares at a per-share issuance price of W21,000 (par value of KRW 5,000) through a resolution of the board of directors.

23. Hybrid Securities

Details of hybrid security classified as equity as of December 31, 2025 and 2024, are as follows:


(in thousands of Korean won)	Issuance date	Maturity		Interest rate (%)		2025		2024
Bond-type Hybrid Securities No.1¹	March 31, 2022		Permanent		4.30		208,010,652		208,010,652
Bond-type Hybrid Securities No.2	May 30, 2022		Permanent		4.80		48,170,880		48,170,880
Bond-type Hybrid Securities No.3²	September 30, 2022		Permanent		5.50		249,948,780		249,948,780
Bond-type Hybrid Securities No.4³	May 8, 2023		Permanent		5.35		119,963,080		119,963,080
Bond-type Hybrid Securities No.5	March 21, 2024		Permanent		5.22		129,999,380		129,999,380

							756,092,772		756,092,772

¹	As at December 31, 2025 and 2024, among the hybrid securities issued by the Group, the balance held by KB Financial Group, a related party of the Group, is W200,000 million.

²	As at December 31, 2025 and 2024, among the hybrid securities issued by the Group, the balance held by KB Financial Group, a related party of the Group, is W230,000 million.

³	As at December 31, 2025 and 2024, among the hybrid securities issued by the Group, the balance held by KB Financial Group, a related party of the Group, is W100,000 million.

The Group may extend the maturity under the same conditions at the time of maturity of the above hybrid securities, and interest payment may be deferred except in cases where a cash dividend or stock dividend has been resolved for common stock. Above hybrid securities are early redeemable by the Group after 5 years from the issuance date and each interest payment date thereafter.

24. Other Paid-in Capital

The details of other paid-in capital as at December 31, 2025 and 2024, are as follows:


(in thousands of Korean won)	2025			2024
Share premium ¹		1,142,353,750			1,142,353,750
Gains and losses on sale of treasury share		(45,331,811	)		(45,331,811	)
Other equity ²		382,237,961			382,237,961

		1,479,259,900			1,479,259,900

¹	Share premium was previously paid from stock issuance and new stock issuance due to merger and can only be used for capitalization and deficit recovery.

²	Other equity arose from the paid-in capital increase of preferred share and gains on merger.

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

The changes in other paid-in capital for the years ended December 31, 2025 and 2024, are as follows:


(in thousands of Korean won)	2025		2024
Beginning		1,479,259,900		1,478,687,978
Changes in scope of consolidation		—		571,922

Ending		1,479,259,900		1,479,259,900

25. Retained Earnings

The details of retained earnings as at December 31, 2025 and 2024, are as follows:


(in thousands of Korean won)	2025		2024
Legal reserve
Earned surplus reserve ¹		201,656,298		173,656,298
Reserve for liability to compensate for damages²		500,000		500,000
Voluntary reserves		2,109,442,799		1,889,816,387
Regulatory reserve for credit losses ³		66,404,685		47,300,393
Unappropriated retained earnings		398,086,375		598,544,544

		2,776,090,157		2,709,817,622

The Commercial Act of the Republic of Korea requires the Group to appropriate, as a legal reserve, an amount equal to a minimum of 10% of cash dividends paid until such reserve equals 50% of its issued share capital. The reserve is not available for the payment of cash dividends, but may be transferred to share capital or used to reduce accumulated deficit.

The Parent Company provides reserve for loss on electronic financial transactions to make reparation for the damage in process of the electronic transfers or operations. Also, the Parent Company provides reserve to compensate for inflicted damage on a credit information subject when violating the Credit Information Use and Protection Act.

³	The Group accumulates allowances for possible loan losses in accordance with Korean IFRS and reserve for possible loan losses as much as the amount below the provision of allowances according to minimum accumulation ratio required by Financial Supervisory Service.

Changes in retained earnings for the years ended December 31, 2025 and 2024, are as follows:


(in thousands of Korean won)	2025			2024
Beginning balance		2,709,817,622			2,304,302,712
Profit for the year		679,735,667			591,153,190
Dividends		(580,000,000	)		(150,000,000	)
Dividends of hybrid securities		(38,599,700	)		(37,064,078	)
Replacement due to disposal of equity investments at FVOCI		1,051,211			1,425,798
Reclassification of revaluation surplus due to disposal of property and equipment		4,085,357			—

Ending balance		2,776,090,157			2,709,817,622

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

The amount of dividends and dividends per share for the years ended December 31, 2025 and 2024, are as follows:

2025

(in Korean won and number of shares)

Type of
share

Number of
shares
outstanding

Number of
treasury

shares

Number of
dividend
shares

Dividend
per share

Total dividend

(In thousands of
Korean won)

Interim dividend

Ordinary
share

298,620,424
shares

—

298,620,424

1,004

300,000,000

Annual dividend

Ordinary
share

298,620,424
shares

—

298,620,424

937

280,000,000

2024

(in Korean won and number of shares)

Type of
share

Number of
shares
outstanding

Number of
treasury

shares

Number of
dividend
shares

Dividend
per share

Total dividend

(In thousands of
Korean won)

Annual dividend

Ordinary
share

298,620,424
shares

—

298,620,424

502

150,000,000

Payout and dividend yield ratios as at December 31, 2025 and 2024, are as follows:


	2025			2024
	Ordinary share			Ordinary share
	Interim dividend			Annual dividend
Number of shares outstanding		298,620,424			298,620,424
Number of treasury shares		—			—
Number of dividend shares		298,620,424			298,620,424
Par value per share (in Korean won)		5,000			5,000
Payout ratio		20.08	%		18.75	%
Scheduled dividends (in thousands of Korean won)		300,000,000			280,000,000
Dividends per share (in Korean won)		1,004			937

The Group accumulates allowances for possible loan losses in accordance with Korean IFRS and reserve for possible loan losses as much as the amount below the provision of allowances according to minimum accumulation ratio required by Regulation on Supervision of Financial Investment.

Regulatory reserve for credit losses, a type of voluntary reserve for retained earnings, reverses the exceeding amount if the beginning balance of the reserve exceeds the ending balance at the closing date. Regulatory reserve for credit losses is generally recognized after unappropriated deficit is disposed.

The details of the regulatory reserve for credit losses (reversal of reserve) to be appropriated as at December 31, 2025 and 2024, are as follows:


(in thousands of Korean won)	2025			2024
Beginning		66,404,685			47,300,393
Amounts to be reserved (reversed)		(8,837,499	)		19,104,292

Ending		57,567,186			66,404,685

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

The adjusted profit of the year after reflection of reversal (provision) of reserve for credit losses for the years ended December 31, 2025 and 2024, are as follows:


(in thousands of Korean won)	2025		2024
Profit for the year before reserve for credit loss		679,735,667		590,360,820
Amounts to be reversed (reserved)		8,837,499		(19,104,292	)

Adjusted profit after reversed (provision) of reserve for credit losses¹		688,573,166		571,256,528

Reserve for credit loss is announced by Article 3 Clause 8 of the Regulation on Financial Investment Business. Adjusted profit after reserve for credit losses is not based on Korean IFRS and is calculated on the assumption that provision or reversal of reserve for credit losses before tax is adjusted to the profit.

26. Other Components of Equity

The details of other components of equity as at December 31, 2025 and 2024, are as follows:


(in thousands of Korean won)	2025			2024
Changes in the fair value of financial assets at FVOCI		323,157,359			295,100,380
Share of other comprehensive income of associates		(839,072	)		(52,401	)
Revaluation surplus		57,191,703			62,144,795
Remeasurements of net defined benefit liabilities		(53,717,375	)		(47,480,752	)
Exchange differences on translation of foreign operations		86,475,274			112,942,558
Hedge of net investments in foreign operations		(32,398,689	)		(38,438,855	)
Gain or loss on financial liabilities designated at FVTPL due to the change of credit risk		(20,522,685	)		(17,297,087	)

		359,346,515			366,918,638

The changes in gain or loss on valuation of financial assets at FVOCI for the years ended December 31, 2025 and 2024, are as follows:


(in thousands of Korean won)	2025			2024
Beginning balance		295,100,380			289,671,988
Gain (loss) on valuation		55,483,663			13,304,973
Tax effect of gain (loss) on valuation ¹		(20,300,855	)		(3,668,103	)
Transfer to gain due to disposal or impairment		(9,681,835	)		(5,718,041	)
Tax effect of transfer ¹		2,556,006			1,509,563

Ending balance		323,157,359			295,100,380

¹	Including income tax effect (Note 35)

The changes in the Group’s share of other comprehensive income of associates for the years ended December 31, 2025 and 2024, are as follows:


(in thousands of Korean won)	2025			2024
Beginning balance		(52,401	)		(6,586,082	)
Changes of other comprehensive income of associates		(405,627	)		8,909,673
Tax effect ¹		(381,044	)		(2,375,992	)

Ending balance		(839,072	)		(52,401	)

¹	Including income tax effect (Note 35)

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

The changes in gain on revaluation of property and equipment for the years ended December 31, 2025 and 2024, are as follows:


(in thousands of Korean won)	2025			2024
Beginning balance		62,144,795			62,144,795
Replacement due to disposal of revaluated assets		(5,550,756	)		—
Tax effect related to replacement due to disposal of revaluated assets¹		597,664			—

Ending balance		57,191,703			62,144,795

¹	Including income tax effect (Note 35)

The changes in remeasurements of the net defined benefit liability for the years ended December 31, 2025 and 2024, are as follows:


(in thousands of Korean won)	2025			2024
Beginning balance		(47,480,751	)		(42,790,562	)
Changes due to valuation		(8,597,161	)		(6,392,474	)
Tax effect ¹		2,360,537			1,702,285

Ending balance		(53,717,375	)		(47,480,751	)

¹	Including income tax effect (Note 35)

The changes in exchange differences on translation of foreign operations for the years ended December 31, 2025 and 2024, are as follows:


(in thousands of Korean won)	2025			2024
Beginning balance		112,942,559			48,609,018
Exchange differences on foreign operations translation		(27,871,081	)		63,911,262
Tax effect ¹		(44,308	)		2,485,191
Non-controlling interest		1,448,104			(2,062,912	)

Ending balance		86,475,274			112,942,559

¹	Including income tax effect (Note 35)

The changes in gain or loss on valuation of hedge of net investments in foreign operations for the years ended December 31, 2025 and 2024, are as follows:


(in thousands of Korean won)	2025			2024
Beginning balance		(38,438,855	)		(16,769,049	)
Gain (loss) on net investment in a foreign operation hedge		7,538,862			(29,442,671	)
Re-classification to net income due to the end of net investments in foreign operations		—			—
Tax effect ¹		(1,498,696	)		7,772,865

Ending balance		(32,398,689	)		(38,438,855	)

¹	Including income tax effect (Note 35)

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

The change in gain or loss on financial liabilities designated at FVTPL due to the change of credit risk for the years ended December 31, 2025 and 2024, are as follows:


(in thousands of Korean won)	2025			2024
Beginning balance		(17,297,087	)		(11,782,162	)
Changes		(4,805,676	)		(7,493,104	)
Tax effect ¹		1,580,078			1,978,179

Ending balance		(20,522,685	)		(17,297,087	)

¹	Including income tax effect (Note 35)

27. Fee and Commission Income and Expense

The details of fee and commission income for the years ended December 31, 2025 and 2024, are as follows:


(in thousands of Korean won)	2025		2024
Brokerage commissions		777,313,489		550,643,935
Underwriting commissions		166,086,582		176,339,844
Brokerage commissions on collective investment securities		34,291,973		23,565,918
Management fee on collective investment securities		—		5,304
Management fee on asset management		50,209,302		38,160,750
Commissions on merger and acquisition		55,334,944		89,101,232
Trust fees and commissions		20,822,534		17,866,581
Other commissions		114,526,370		100,443,111

		1,218,585,194		996,126,675

The details of fee and commission expense for the years ended December 31, 2025 and 2024, are as follows:


(in thousands of Korean won)	2025		2024
Trading commission		63,932,836		53,916,826
Advisory fees		4,348,664		3,047,910
Investment management delegation fees		1,398,604		1,867,849
Commission fees on group brand		19,879,298		21,032,741
Contributions to external institutions		9,461,193		9,056,725
Others		178,488,679		135,324,979

		277,509,274		224,247,030

28. Gain or Loss on Valuation and Disposal of Financial Instruments

The details of gain or loss on valuation and disposal of financial instruments for the years ended December 31, 2025 and 2024, are as follows:


	2025
(in thousands of Korean won)	Gain		Loss		Net
Financial instruments at FVTPL		3,789,035,307		1,721,960,987		2,067,074,320
Financial instruments designated at FVTPL		145,592,815		658,229,659		(512,636,844	)
Derivative financial instruments		5,725,790,982		7,041,422,093		(1,315,631,111	)
Financial assets at FVOCI ¹		27,617,524		4,831,583		22,785,941

		9,688,036,628		9,426,444,322		261,592,306

¹	Gain or loss on valuation of financial assets at FVOCI is excluded.

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024


	2024
(in thousands of Korean won)	Gain		Loss		Net
Financial instruments at FVTPL		1,859,276,411		1,572,167,286		287,109,125
Financial instruments designated at FVTPL		324,748,471		640,871,724		(316,123,253	)
Derivative financial instruments		4,539,490,246		4,382,826,145		156,664,101
Financial assets at FVOCI ¹		13,207,427		717,576		12,489,851

		6,736,722,555		6,596,582,731		140,139,824

¹	Gain or loss on valuation of financial assets at FVOCI is excluded.

The details of gain or loss on valuation and disposal of financial instruments at FVTPL for the years ended December 31, 2025 and 2024, are as follows:


	2025
(in thousands of Korean won)	Gain		Loss		Net
Financial assets at FVTPL		3,626,543,482		932,099,408		2,694,444,074
Financial liabilities at FVTPL		162,491,825		789,861,579		(627,369,754	)

		3,789,035,307		1,721,960,987		2,067,074,320


	2024
(in thousands of Korean won)	Gain		Loss		Net
Financial assets at FVTPL		1,502,637,546		1,214,255,744		288,381,802
Financial liabilities at FVTPL		356,638,865		357,911,542		(1,272,677	)

		1,859,276,411		1,572,167,286		287,109,125

The details of gain or loss on valuation and disposal of financial instruments designated at FVTPL for the years ended December 31, 2025 and 2024, are as follows:


	2025
(in thousands of Korean won)	Gain		Loss		Net
Financial liabilities designated at FVTPL
Derivatives-linked securities sold		98,914,557		511,123,772		(412,209,215	)
Other OTC derivative-combined contract sold		18,405,237		99,087,124		(80,681,887	)
Exchange traded notes sold		28,273,021		48,018,763		(19,745,742	)

		145,592,815		658,229,659		(512,636,844	)


	2024
(in thousands of Korean won)	Gain		Loss		Net
Financial liabilities designated at FVTPL
Derivatives-linked securities sold		266,262,027		526,918,763		(260,656,736	)
Other OTC derivative-combined contract sold		39,681,189		77,671,319		(37,990,130	)
Exchange traded notes sold		18,805,255		36,281,642		(17,476,387	)

		324,748,471		640,871,724		(316,123,253	)

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

The details of gain or loss on valuation and disposal of derivative financial instruments for the years ended December 31, 2025 and 2024, are as follows:


	2025
(in thousands of Korean won)	Gain		Loss		Net
Interest rate		2,084,073,388		1,999,400,554		84,672,834
Currency		591,709,604		670,752,733		(79,043,129	)
Stock		2,782,166,804		4,157,849,499		(1,375,682,695	)
Credit		59,327,916		55,681,259		3,646,657
Commodity		134,684,934		112,210,345		22,474,589
Others		73,828,336		45,527,703		28,300,633

		5,725,790,982		7,041,422,093		(1,315,631,111	)


	2024
(in thousands of Korean won)	Gain		Loss		Net
Interest rate		1,255,884,102		1,355,656,950		(99,772,848	)
Currency		752,675,408		697,460,916		55,214,492
Stock		2,347,318,616		2,068,586,278		278,732,338
Credit		46,411,148		42,064,301		4,346,847
Commodity		63,666,021		57,086,321		6,579,700
Others		73,534,951		161,971,379		(88,436,428	)

		4,539,490,246		4,382,826,145		156,664,101

The details of gain or loss on valuation and disposal of financial assets at FVOCI for the years ended December 31, 2025 and 2024, are as follows:


	2025
(in thousands of Korean won)	Gain		Loss		Net
Debt instruments		27,617,524		4,831,583		22,785,941

	27,617,524		4,831,583		22,785,941


	2024
(in thousands of Korean won)	Gain		Loss		Net
Debt instruments		13,207,427		717,576		12,489,851

	13,207,427		717,576		12,489,851

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

29. Interest Income and Interest Expense

The details of interest income for the years ended December 31, 2025 and 2024, are as follows:


(in thousands of Korean won)	2025		2024
Interest on financial assets at FVTPL
Interest on debt instruments at FVTPL		670,653,926		681,520,108
Interest on loans at FVTPL		37,081,442		14,455,538
Interest on commercial papers		110,681,905		149,585,454

		818,417,273		845,561,100

Interest on financial assets at FVOCI and financial assets measured at amortised cost
Interest on loans measured at amortised cost		19,230,528		22,463,982
Interest on debt instruments at FVOCI		217,346,070		199,362,668
Interest on broker’s loans		279,844,192		259,639,549
Interest on loans		294,804,342		312,885,597
Interest on deposits with KSFC		36,351,403		32,054,407
Interest on certificates of deposit		854,168		3,234,932
Interest on deposits with financial institution		466,358		129,946
Interest on bonds purchased under resale agreements		43,788,732		53,913,386
Gains on transactions of certificates of deposits		62,968		1,922,735
Interest on deposits		42,517,336		37,066,255
Interest on other receivables		1,157,351		769,006
Others ¹		12,806,888		17,480,439

		949,230,336		940,922,902

		1,767,647,609		1,786,484,002

¹	Interest on lease receivables of ¥ 594 million and ¥ 779 million for the year ended December 31, 2025 and 2024, respectively, are included.

The details of interest expense for the years ended December 31, 2025 and 2024, are as follows:


(in thousands of Korean won)	2025		2024
Interest on borrowings		86,333,773		106,241,872
Fees for the proceeds from the sale of stocks loaned		264,455		441,330
Interest on customers’ deposits		67,790,894		57,338,824
Interest on bonds sold under repurchase agreements		260,275,600		305,570,078
Losses on transactions of certificates of deposit		7		2,243
Interest on call money		22,920,036		26,066,872
Interest on debentures		150,024,106		112,488,174
Interest on short-term note issued		467,353,331		486,374,722
Interest on asset-backed short-term bonds		55,795,922		71,317,993
Others ¹		21,830,211		13,349,087

		1,132,588,335		1,179,191,195

¹	Interest on lease liabilities of ¥ 3,489 milliion and ¥ 4,292 million for the year ended December 31, 2025 and 2024, respectively, are included.

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

30. Gain or Loss on Valuation and Disposal of Financial Assets measured at Amortised Costs

The detail of gain or loss on valuation and disposal of financial assets measured at amortised cost for the years ended December 31, 2025 and 2024, are as follows:


(in thousands of Korean won)	2025			2024
Gain(loss) on valuation of financial assets measured at amortised cost
Reversal(provision) of allowance for credit losses of loans		(81,894,343	)		(52,630,200	)
Reversal(provision) of allowance for credit losses of deposits		(321,555	)		(448,028	)
Reversal(provision) of allowance for credit losses of other financial assets		(6,710,818	)		(971,963	)
Gain(loss) on disposal of financial assets measured at amortised cost
Gain(loss) on disposal of loans measured at amortised cost		(78,921,892	)		1,670,968

		(167,848,608	)		(52,379,223	)

31. Gain or Loss on Foreign Currency Transactions

The details of gain on foreign currency transactions for the years ended December 31, 2025 and 2024, are as follows:


(in thousands of Korean won)	2025		2024
Gain on foreign currency transactions		939,706,730		596,499,597
Gain on foreign exchange translation		257,826,579		406,750,477

		1,197,533,309		1,003,250,074

The details of loss on foreign currency transactions for the years ended December 31, 2025 and 2024, are as follows:


(in thousands of Korean won)	2025		2024
Loss on foreign currency transactions		914,519,460		586,288,760
Loss on foreign exchange translation		187,238,292		268,970,626

		1,101,757,752		855,259,386

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

32. Other Operating Income and Other Operating Expenses

The details of other operating income for the years ended December 31, 2025 and 2024, are as follows:


(in thousands of Korean won)	2025		2024
Dividend income		107,957,832		86,535,185
Distribution income		141,024,848		97,789,107
Reversal of provision for credit loss		1,605,359		4,014,930
Operating lease income		9,982,891		16,640,506
Others		7,936,992		11,256,044

		268,507,922		216,235,772

The details of other operating expenses for the years ended December 31, 2025 and 2024, are as follows:


(in thousands of Korean won)	2025		2024
Provision for credit loss		4,774,780		16,722,464
Others		47,103,039		53,079,228

		51,877,819		69,801,692

33. Selling and Administrative Expenses

(a) The details of selling and administrative expenses for the years ended December 31, 2025 and 2024, are as follows:


(in thousands of Korean won)	2025		2024
Labor Costs
Salaries		538,064,215		458,287,335
Post-employment benefits		33,483,517		27,426,636
Retirement bonus		2,662,080		15,802,956
Other long-term employee benefits		547,163		837,170
Employee benefits		103,170,487		102,637,110

		677,927,462		604,991,207

Other selling and administrative expenses
Employee benefits		11,605,573		11,576,466
Sales promotion expenses		1,667,169		1,560,973
Computer system operation expenses		76,588,814		71,664,539
Management expenses for rent		21,309,385		20,352,347
Commissions		26,896,701		31,943,754
Research and development		437,305		377,327
Advertising expenses		32,685,742		30,550,556
Depreciation		56,145,306		52,479,360
Training expenses		2,670,955		2,553,712
Amortization expenses of intangible assets		58,477,146		54,692,261
Taxes and dues		56,705,654		45,034,513
Consignment fees		2,021,940		5,139,077
Others		45,574,398		47,655,252

		392,786,088		375,580,137

		1,070,713,550		980,571,344

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

(b) Stock Grant Agreement

KB Financial Group, the parent company, has entered into a stock-based compensation agreement (Stock Grant) with its executives and employees. KB Financial Group and the Group settle the expenses incurred pursuant to this agreement. The Group recognizes the compensation amount it incurs annually pursuant to the agreement as an expense, recognized as selling and administrative expenses.

The details of the share grants linked to long-term performance as at December 31, 2025, are as follows:


(In number of shares)	Grant date	Granted shares		Payable shares¹		Vesting conditions
Series 1-1	2010-1-1		732		160	Service, vesting conditions : market 40%, non-market 60%
Series 1-8	2011-1-1		766		219	Service, vesting conditions : market 40%, non-market 60%
Series 1-10	2012-1-1		1,175		384	Service, vesting conditions : market 40%, non-market 60%
Series 1-11	2012-6-18		708		142	Service, vesting conditions : market 40%, non-market 60%
Series 1-13	2013-1-1		2,532		749	Service, vesting conditions : market 40%, non-market 60%
Series 1-19	2015-2-24		1,812		584	Service, vesting conditions : market 30%, non-market 70%
Series 1-21	2016-1-1		5,091		739	Service, vesting conditions : market 30%, non-market 70%
Series 1-22	2016-12-30		32,669		7,643	Service, vesting conditions : market 20%, non-market 80%
Series 1-24	2017-2-24		1,698		1,516	Service, vesting conditions : market 20%, non-market 80%
Series 1-26	2017-9-4		1,551		1,028	Service, vesting conditions : market 20%, non-market 80%
Series 1-28	2018-1-1		6,739		2,253	Service, vesting conditions : market 20%, non-market 80%
Series 1-30	2019-1-1		35,457		19,341	Service, vesting conditions : market 20%, non-market 80%
Series 1-31	2019-2-24		809		637	Service, vesting conditions : market 20%, non-market 80%
Series 1-32	2019-3-4		1,888		1,021	Service, vesting conditions : market 20%, non-market 80%
Series 1-33	2019-6-1		2,246		—	Service, vesting conditions : market 20%, non-market 80%
Series 1-34	2019-9-1		2,927		—	Service, vesting conditions : market 20%, non-market 80%
Series 1-35	2019-9-4		358		207	Service, vesting conditions : market 20%, non-market 80%
Series 1-36	2019-5-27		1,167		—	Service, vesting conditions : market 20%, non-market 80%
Series 1-37	2020-1-1		47,886		5,017	Service, vesting conditions : market 20%, non-market 80%
Series 1-38	2020-3-6		2,856		411	Service, vesting conditions : market 0%, non-market 100%
Series 1-39	2020-8-1		4,003		453	Service, vesting conditions : market 20%, non-market 80%
Series 1-40	2021-1-1		98,808		18,343	Service, vesting conditions : market 20%, non-market 80%
Series 1-40	2021-1-1		5,675		747	Service, vesting conditions : market 0%, non-market 100%
Series 1-41	2021-3-4		3,591		1,856	Service, vesting conditions : market 20%, non-market 80%
Series 1-42	2021-3-15		5,034		913	Service, vesting conditions : market 20%, non-market 80%

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024


Series 1-43	2021-5-27	604	—	Service, vesting conditions : market 20%, non-market 80%
Series 1-44	2021-6-1	2,904	1,487	Service, vesting conditions : market 20%, non-market 80%
Series 1-45	2021-8-1	2,320	660	Service, vesting conditions : market 20%, non-market 80%
Series 1-46	2021-9-1	3,201	547	Service, vesting conditions : market 20%, non-market 80%
Series 1-47	2022-1-1	58,681	14,237	Service, vesting conditions : market 20%, non-market 80%
Series 1-48	2022-2-17	1,990	1,596	Service, vesting conditions : market 20%, non-market 80%
Series 1-49	2022-3-6	928	86	Service, vesting conditions : market 0%, non-market 100%
Series 1-50	2022-03-14	588	562	Service, vesting conditions : market 20%, non-market 80%
Series 1-51	2022-05-09	2,839	2,524	Service, vesting conditions : market 20%, non-market 80%
Series 1-52	2022-07-18	190	146	Service, vesting conditions : market 20%, non-market 80%
Series 1-53	2022-08-01	3,587	3,053	Service, vesting conditions : market 20%, non-market 80%
Series 1-54	2022-08-16	3,627	3,000	Service, vesting conditions : market 20%, non-market 80%
Series 1-55	2023-01-01	76,500	61,213	Service, vesting conditions : market 20%, non-market 80%
Series 1-55	2023-01-01	5,492	5,274	Service, vesting conditions : market 0%, non-market 100%
Series 1-56	2023-02-15	3,161	3,355	Service, vesting conditions : market 20%, non-market 80%
Series 1-57	2023-03-04	3,076	2,807	Service, vesting conditions : market 20%, non-market 80%
Series 1-58	2023-03-15	1,367	276	Service, vesting conditions : market 20%, non-market 80%
Series 1-59	2023-06-01	2,876	2,686	Service, vesting conditions : market 20%, non-market 80%
Series 1-60	2023-08-01	3,004	3,806	Service, vesting conditions : market 20%, non-market 80%
Series 1-61	2023-09-01	3,390	4,515	Service, vesting conditions : market 20%, non-market 80%
Series 1-62	2024-01-01	78,235	111,382	Service, vesting conditions : market 20%, non-market 80%
Series 1-63	2024-02-17	953	917	Service, vesting conditions : market 20%, non-market 80%
Series 1-64	2024-05-09	2,432	3,218	Service, vesting conditions : market 20%, non-market 80%
Series 1-65	2024-08-01	429	422	Service, vesting conditions : market 20%, non-market 80%
Series 1-66	2024-08-16	397	345	Service, vesting conditions : market 20%, non-market 80%
Series 1-67	2025-01-01	37,684	22,208	Service, vesting conditions : market 30%, non-market 70%
Series 1-67	2025-01-01	4,312	2,156	Service, vesting conditions : market 0%, non-market 100%
Series 1-68	2025-02-01	1,704	779	Service, vesting conditions : market 30%, non-market 70%
Series 1-69	2025-02-15	916	916	Service, vesting conditions : market 30%, non-market 70%
Series 1-70	2025-08-01	1,552	325	Service, vesting conditions : market 30%, non-market 70%
Series 1-71	2025-09-01	1,590	265	Service, vesting conditions : market 30%, non-market 70%

		578,707	319,126

¹	The number of maximum payable shares per executive as at December 31, 2025.

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

The details of share grants linked to short-term performance as at December 31, 2025, are as follows:


(In number of shares)	Grant date	Granted shares		Payable shares¹		Vesting conditions²
Series 2-3	2016-1-1		5,454		1,241	Proportional to service period, vesting conditions satisfied
Series 2-4	2017-1-1		21,346		6,970	Proportional to service period, vesting conditions satisfied
Series 2-5	2018-1-1		30,248		13,842	Proportional to service period, vesting conditions satisfied
Series 2-6	2019-1-1		21,853		13,182	Proportional to service period, vesting conditions satisfied
Series 2-7	2020-1-1		28,507		14,535	Proportional to service period, vesting conditions satisfied
Series 2-8	2021-1-1		63,350		15,444	Proportional to service period, vesting conditions satisfied
Series 2-9	2022-1-1		51,393		27,367	Proportional to service period, vesting conditions satisfied
Series 2-10	2023-1-1		71,755		54,262	Proportional to service period, vesting conditions satisfied
Series 2-11	2024-1-1		28,221		28,103	Proportional to service period, vesting conditions satisfied
Series 2-12	2025-1-1		22,418		22,418	Proportional to service period, vesting conditions satisfied
Series 3-3	2016-1-1		15,036		3,498	Proportional to service period, vesting conditions satisfied
Series 3-4	2017-1-1		12,112		5,631	Proportional to service period, vesting conditions satisfied
Series 3-5	2018-1-1		10,352		6,351	Proportional to service period, vesting conditions satisfied
Series 3-6	2019-1-1		18,194		11,852	Proportional to service period, vesting conditions satisfied
Series 3-7	2020-1-1		18,711		13,222	Proportional to service period, vesting conditions satisfied
Series 3-8	2021-1-1		89,386		23,467	Proportional to service period, vesting conditions satisfied
Series 3-9	2022-1-1		66,060		22,075	Proportional to service period, vesting conditions satisfied
Series 3-10	2023-1-1		76,048		52,628	Proportional to service period, vesting conditions satisfied
Series 3-11	2024-1-1		59,589		59,491	Proportional to service period, vesting conditions satisfied
Series 4-1	2017-12-31		23,667		21,865	Proportional to service period, vesting conditions satisfied
Series 4-2	2019-12-31		2,330		793	Proportional to service period, vesting conditions satisfied
Series 4-3	2020-12-31		10,649		1,396	Proportional to service period, vesting conditions satisfied
Series 4-4	2021-12-31		223,942		5,311	Proportional to service period, vesting conditions satisfied
Series 4-5	2022-12-31		205,947		60,248	Proportional to service period, vesting conditions satisfied
Series 4-6	2023-12-31		266,894		168,292	Proportional to service period, vesting conditions satisfied
Series 4-7	2024-12-31		247,951		238,014	Proportional to service period, vesting conditions satisfied

			1,691,413		891,498

¹	The number of maximum payable shares per executive as at December 31, 2025.

²	Number of vested shares is determined by performance and paid for a deferred payment schedule over 3 to 5 years.

100

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

Share grants are measured at fair value using the Monte Carlo Simulation Model and assumptions used in determining the fair value as at December 31, 2025, are as follows:


(In Korean won)	Risk free rate (%)	Fair value (Market performance condition)	Fair value (Non-market performance condition)
Series 1-1	2,556	—	125,944~125,944
Series 1-8	2,556	—	125,944~125,944
Series 1-10	2,556	—	125,944~125,944
Series 1-11	2,556	—	47,631~47,631
Series 1-13	2,556	—	47,631~125,944
Series 1-19	2,556	—	45,096~47,631
Series 1-21	2,556	—	45,096~125,944
Series 1-22	2,556	—	45,096~125,944
Series 1-24	2,556	—	45,096~56,379
Series 1-26	2,556	—	45,096~56,379
Series 1-28	2,556	—	45,096~125,944
Series 1-30	2,556	—	50,973~125,944
Series 1-31	2,556	—	45,096~56,379
Series 1-32	2,556	—	115,556~125,944
Series 1-35	2,556	—	45,096~56,379
Series 1-37	2,556	—	111,412~125,944
Series 1-38	2,556	—	125,944~125,944
Series 1-39	2,556	—	125,944~125,944
Series 1-40	2,556	—	107,266~125,944
Series 1-41	2,556	—	115,556~125,944
Series 1-42	2,556	—	120,094~125,944
Series 1-44	2,556	—	115,556~125,944
Series 1-45	2,556	—	120,094~125,944
Series 1-46	2,556	—	120,094~125,944
Series 1-47	2,556	—	111,412~125,944
Series 1-48	2,556	—	115,556~125,944
Series 1-49	2,556	—	125,944~125,944
Series 1-50	2,556	—	115,556~125,944
Series 1-51	2,556	—	115,556~125,944
Series 1-52	2,556	—	115,556~125,944
Series 1-53	2,556	—	115,556~125,944
Series 1-54	2,556	—	115,556~125,944
Series 1-55	2,556	—	107,266~125,944
Series 1-56	2,556	—	111,412~120,094
Series 1-57	2,556	—	115,556~125,944
Series 1-58	2,556	—	120,094~125,944
Series 1-59	2,556	—	115,556~125,944
Series 1-60	2,556	—	111,412~120,094
Series 1-61	2,556	—	111,412~120,094
Series 1-62	2,556	87,156~125,944	115,556~125,944
Series 1-63	2,556	72,231~87,156	72,231~79,280
Series 1-64	2,556	107,266~120,094	107,266~115,556
Series 1-65	2,556	87,156~125,944	115,556~125,944
Series 1-66	2,556	87,156~125,944	115,556~125,944
Series 1-67	2,556	74,382~115,478	107,266~120,094
Series 1-68	2,556	92,562~103,527	103,317~111,412
Series 1-69	2,556	105,128~118,841	111,412~120,094
Series 1-70	2,556	103,059~115,267	103,317~111,412
Series 1-71	2,556	103,317~115,556	103,317~111,412
Series 2-3	2,556	—	47,631~125,944
Series 2-4	2,556	—	45,096~125,944
Series 2-5	2,556	—	45,096~125,944
Series 2-6	2,556	—	45,096~125,944
Series 2-7	2,556	—	50,973~125,944
Series 2-8	2,556	—	111,412~125,944
Series 2-9	2,556	—	52,755~125,944

101

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024


(In Korean won)	Risk free rate (%)	Fair value (Market performance condition)	Fair value (Non-market performance condition)
Series 2-10	2,556	—	107,266~125,944
Series 2-11	2,556	—	107,266~125,944
Series 2-12	2,556	—	103,317~120,094
Series 3-3	2,556	—	47,631~125,944
Series 3-4	2,556	—	45,096~125,944
Series 3-5	2,556	—	45,096~125,944
Series 3-6	2,556	—	45,096~125,944
Series 3-7	2,556	—	50,973~125,944
Series 3-8	2,556	—	111,412~125,944
Series 3-9	2,556	—	111,412~125,944
Series 3-10	2,556	—	107,266~125,944
Series 3-11	2,556	—	107,266~125,944
Series 4-1	2,556	—	45,096~56,379
Series 4-2	2,556	—	50,973~50,973
Series 4-3	2,556	—	50,973~50,973
Series 4-4	2,556	—	50,973~87,156
Series 4-5	2,556	—	52,755~125,944
Series 4-6	2,556	—	87,156~125,944
Series 4-7	2,556	—	115,556~125,944

The Group used the volatility of the stock price over the previous year as the expected volatility and used the dividend yield as the arithmetic mean of the dividend rate of one year before, two years before, and three years before the base year, in order to calculate fair value. Fair value is calculated based on risk free interest rate of 1 year-KTB rate.

In relation to the above share-based arrangements, the compensation cost amounting to W 128,745,275 thousand and W 92,491,618 thousand is recorded as accrued expenses to KB Financial Group Inc. as at December 31, 2025 and 2024, respectively.

34. Non-operating Income and Non-operating Expenses

The details of non-operating income for the years ended December 31, 2025 and 2024, are as follows:


(in thousands of Korean won)	2025		2024
Gain on disposal of property and equipment		18,746,946		2,397
Gain on disposal of investment properties		1,017,941		—
Gain on disposal of intangible assets		171,865		3,922,610
Reversal of impairment loss on intangible assets		393,000		1,019,296
Rent		7,205,543		7,299,613
Gain related to investments in associates		36,499,424		20,361,271
Others		48,907,737		47,347,733

		112,942,456		79,952,920

The details of non-operating expenses for the years ended December 31, 2025 and 2024, are as follows:


(in thousands of Korean won)	2025		2024
Loss on disposal of property and equipment		12,477		245,419
Depreciation of investment properties		558,673		533,251
Impairment loss on investment properties		21,418,501		—
Impairment loss on intangible assets		265,526		1,105,841
Donation		6,831,261		7,327,168
Loss related to investments in subsidiaries and associates		40,410,129		51,857,988
Others		48,125,180		51,036,717

		117,621,747		112,106,384

102

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

35. Tax Expense and Deferred Tax

The details of income tax expense for the years ended December 31, 2025 and 2024, are as follows:


(in thousands of Korean won)	2025			2024
Current tax
Current tax on profits for the year		47,823,561			275,696,796
Adjustments in respect of prior years		4,405,296			(763,297	)
Deferred tax
Origination and reversal of temporary differences		183,301,420			(113,145,045	)
Tax recognized directly in equity
Gain or loss on valuation for financial assets at FVOCI		(17,744,850	)		(2,158,539	)
Shares of other comprehensive income of associates		(381,044	)		(2,375,992	)
Gain on revaluation of property and equipment		597,663			—
Remeasurements of net defined benefit liabilities		2,360,537			1,702,285
Foreign operations translation		(44,307	)		2,485,191
Hedge of net investments in foreign operations		(1,498,693	)		7,772,865
Changes on the fair value of financial liabilities designated at FVTPL due to the change of credit risk		1,580,077			1,978,179
Tax effect derived from group’s income tax system		4,106,633			(12,920,250	)

Income tax expense		224,506,293			158,272,193

Reconciliations of profit before tax and tax expense for the years ended December 31, 2025 and 2024, are as follows:


(in thousands of Korean won)	2025			2024
Profit before tax (A)		906,891,711			748,633,013

Tax based on statutory rate		229,057,412			187,277,115
Adjustments
Non-deductible expense		4,844,479			5,532,864
Non-taxable income		(11,233,085	)		(13,325,036	)
Changes in deferred tax assets (liabilities) that have not been recognized		(4,549,456	)		(25,982,120	)
Effect from tax reduction and credit		(1,618,595	)		(1,379,761	)
Adjustment in respect of prior years		4,405,297			(763,296	)
Tax effect from group’s income tax system		4,106,633			(12,920,250	)
Changes in tax rate		275,898			—
Others		(782,290	)		19,832,677

Tax expense (B)		224,506,293			158,272,193

Effective tax rate (B/A)		24.76	%		21.14	%

103

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

The changes in deferred tax assets (liabilities) for the years ended December 31, 2025 and 2024, are as follows:


	2025
(in thousands of Korean won)	Beginning balance			Profit (loss) for the year			Other comprehensive income			Ending balance
Provision for impairment		161,330			6,722			—			168,052
Commissions income		5,481,022			1,584,077			—			7,065,099
Financial assets at FVOCI		(108,200,232	)		6,572,033			(17,744,850	)		(119,373,049	)
Defined benefit obligation		20,819,120			(361,935	)		2,360,537			22,817,722
Other long-term employee benefits		1,912,495			(97,423	)		—			1,815,072
Financial assets at FVTPL		56,750,938			(376,414,896	)		—			(319,663,958	)
Financial liabilities at FVTPL		(94,808,622	)		152,845,998			1,580,077			59,617,453
Accrued expenses		84,761,464			22,248,030			—			107,009,494
Dividends (specific overseas company)		10,378,007			1,290,069			—			11,668,076
Accrued income		(46,431,479	)		(10,515,424	)		—			(56,946,903	)
Property and equipment		(21,955,075	)		11,649			597,663			(21,345,763	)
Provisions for asset retirement obligation		2,438,563			93,322			—			2,531,885
Investments in associates and subsidiaries		(6,261,190	)		7,382,301			—			1,121,111
Derivatives		96,628,841			61,258,035			—			157,886,876
Loans		1,340,363			166,200			—			1,506,563
Intangible assets		(21,107,281	)		(178,045	)		—			(21,285,326	)
Plan assets		(2,896,563	)		610,804			—			(2,285,759	)
Advance depreciation provision		(2,401,725	)		(100,072	)		—			(2,501,797	)
Interest related to loan for construction		(51,184	)		1,745			—			(49,439	)
Others		88,324,462			(23,732,404	)		—			64,592,058

Subtotal		64,883,254			(157,329,214	)		(13,206,573	)		(105,652,533	)
Deficit carryforward arising from the current year		—			—			—			—
Subtotal of deferred tax assets (liabilities) of the Parent Company		64,883,254			(157,329,214	)		(13,206,573	)		(105,652,533	)

Unrecognized deferred tax assets (liabilities) of the Parent Company		(17,055,278	)		1,963,622			—			(15,091,656	)

Deferred tax assets (liabilities) of the Parent Company, net ¹		81,938,532			(159,292,836	)		(13,206,573	)		(90,560,877	)
Deferred tax assets of subsidiaries		643,543			385,130			—			1,028,673
Deferred tax liabilities of subsidiaries		(929,584	)		24,012			—			(905,572	)
Changes in deferred tax assets due to adjustment of consolidation		19,578,635			(9,287,107	)		(1,924,045	)		8,367,483

Deferred tax assets of the Group		101,231,126			(100,202,453	)		—			1,028,673

Deferred tax liabilities of the Group		—			(67,968,348	)		(15,130,618	)		(83,098,966	)

¹	The income tax rates used in computing deferred tax assets (liabilities) are the expected average tax rate, applicable to the forecasted period when the temporary differences are reversed.


	2024
(in thousands of Korean won)	Beginning balance			Profit (loss) for the year			Other comprehensive income			Ending balance
Provision for impairment		136,402			24,928			—			161,330
Commissions income		9,136,660			(3,655,638	)		—			5,481,022
Financial assets at FVOCI		(105,219,053	)		(822,640	)		(2,158,539	)		(108,200,232	)
Defined benefit obligation		19,780,819			(663,984	)		1,702,285			20,819,120
Other long-term employee benefits		1,867,887			44,608			—			1,912,495
Financial assets at FVTPL		35,908,444			20,842,494			—			56,750,938
Financial liabilities at FVTPL		(237,598,072	)		140,811,271			1,978,179			(94,808,622	)
Accrued expenses		69,216,464			15,545,000			—			84,761,464
Dividends (specific overseas company)		9,278,179			1,099,828			—			10,378,007
Accrued income		(34,529,235	)		(11,902,244	)		—			(46,431,479	)
Property and equipment		(21,955,416	)		341			—			(21,955,075	)

104

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024


Provisions for asset retirement obligation	2,391,555		47,008		—	2,438,563
Investments in associates and subsidiaries	(2,477,419	)	(3,783,771	)	—	(6,261,190	)
Derivatives	154,172,948		(57,544,107	)	—	96,628,841
Loans	1,506,318		(165,955	)	—	1,340,363
Intangible assets	(20,852,423	)	(254,858	)	—	(21,107,281	)
Plan assets	(3,503,491	)	606,928		—	(2,896,563	)
Advance depreciation provision	(2,401,725	)	—		—	(2,401,725	)
Interest related to loan for construction	(54,907	)	3,723		—	(51,184	)
Others	95,439,313		(7,114,851	)	—	88,324,462

Subtotal	(29,756,752	)	93,118,081		1,521,925	64,883,254
Deficit carryforward arising from the current year	—		—		—	—
Subtotal of deferred tax assets (liabilities) of the Parent Company	(29,756,752	)	93,118,081		1,521,925	64,883,254

Unrecognized deferred tax assets (liabilities) of the Parent Company	(12,365,920	)	(4,689,358	)	—	(17,055,278	)

Deferred tax assets (liabilities) of the Parent Company, net ¹	(17,390,832	)	97,807,439		1,521,925	81,938,532
Deferred tax assets of subsidiaries	1,023,220		(379,677	)	—	643,543
Deferred tax liabilities of subsidiaries	(810,550	)	(119,034	)	—	(929,584	)
Changes in deferred tax assets due to adjustment of consolidation	6,287,460		5,409,109		7,882,066	19,578,635

Deferred tax assets of the Group	1,023,220		100,207,906		—	101,231,126

Deferred tax liabilities of the Group	(11,913,922	)	2,509,931		9,403,991	—

¹	The income tax rates used in computing deferred tax assets (liabilities) are the expected average tax rate, applicable to the forecasted period when the temporary differences are reversed.

Temporary differences which were not recognized due to uncertainty of their realization as at December 31, 2025 and 2024, are as follows:


(in thousands of Korean won)	2025		2024
Taxable temporary difference
Investments in subsidiaries		263,562,468		252,602,567
Intangible assets		58,888,990		58,888,990
Others		445,550		445,550

		322,897,008		311,937,107

Deductible temporary difference
Commission		9,704,616		9,239,637
Dividends		27,650,075		24,531,338
Investments in subsidiaries		38,245,921		37,911,226
Others		2,705,305		2,705,305

		78,305,917		74,387,506

		244,591,091		237,549,601

105

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

Details of income taxes that are charged or credited directly to equity for the years ended December 31, 2025 and 2024, are as follows:


(in thousands of Korean won)	2025			2024
Recognized in other comprehensive income
Gain or loss on valuation for financial assets at FVOCI		(20,300,855	)		(3,668,101	)
Shares of other comprehensive income of associates		(381,044	)		(2,375,992	)
Gains on revaluation of property and equipment		597,663			—
Remeasurements of net defined benefit liabilities		2,360,537			1,702,285
Foreign operations translation		(44,307	)		2,485,191
Hedge of net investments in foreign operations		(1,498,693	)		7,772,865
Changes on the fair value of financial liabilities designated at FVTPL due to the change of credit risk		1,580,077			1,978,179
Reclassified to profit or loss
Gain or loss on valuation for financial assets at FVOCI		2,556,004			1,509,563

		(15,130,618	)		9,403,990

106

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

36. Carrying Amounts of Financial Instruments by Category

Financial assets and liabilities are measured at fair value or amortised cost. Measurement policies for each category of financial assets and financial liabilities are disclosed in Note 2, ‘Material accounting policies’.

The carrying amounts of financial assets and liabilities by category as at December 31, 2025 and 2024, are as follows:


	2025
(in thousands of Korean won)	Financial asset measured at fair value through profit or loss		Financial asset measured at amortised cost		Financial asset measured at fair value through other comprehensive income		Totals
Financial Assets
Cash and deposits		—		4,106,569,157		—		4,106,569,157
Financial assets at FVTPL		42,787,453,811		—		—		42,787,453,811
Derivative financial assets		1,614,613,117		—		—		1,614,613,117
Equity instruments at FVOCI		—		—		1,502,109,926		1,502,109,926
Debt instruments at FVOCI		—		—		7,961,634,491		7,961,634,491
Loans measured at amortised cost		—		10,648,276,535		—		10,648,276,535
Other financial assets		—		6,323,965,381		—		6,323,965,381

		44,402,066,928		21,078,811,073		9,463,744,417		74,944,622,418


	2025
(in thousands of Korean won)	Financial liabilities measured at fair value through profit or loss		Financial liabilities designated at fair value through profit or loss		Financial liabilities measured at amortised cost		Derivative liabilities (hedging)		Totals
Financial Liabilities
Financial liabilities at FVTPL		2,910,712,724		—		—		—		2,910,712,724
Financial liabilities designated at FVTPL		—		7,996,513,415		—		—		7,996,513,415
Derivative financial liabilities		2,085,411,738		—		—		2,911,200		2,088,322,938
Deposit liabilities		—		—		12,110,773,883		—		12,110,773,883
Borrowings		—		—		37,823,437,013		—		37,823,437,013
Other financial liabilities		—		—		5,861,140,106		—		5,861,140,106

		4,996,124,462		7,996,513,415		55,795,351,002		2,911,200		68,790,900,079

107

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Notes to the Consolidated Financial Statements

December 31, 2025 and 2024


	2024
(in thousands of Korean won)	Financial asset measured at fair value through profit or loss		Financial asset measured at amortised cost		Financial asset measured at fair value through other comprehensive income		Totals
Financial Assets
Cash and deposits		—		3,322,504,801		—		3,322,504,801
Financial assets at FVTPL		37,098,018,781		—		—		37,098,018,781
Derivative financial assets		1,394,203,701		—		—		1,394,203,701
Equity instruments at FVOCI		—		—		1,356,768,478		1,356,768,478
Debt instruments at FVOCI		—		—		5,128,522,928		5,128,522,928
Loans measured at amortised cost		—		10,605,842,882		—		10,605,842,882
Other financial assets		—		2,813,756,957		—		2,813,756,957

		38,492,222,482		16,742,104,640		6,485,291,406		61,719,618,528


	2024
(in thousands of Korean won)	Financial liabilities measured at fair value through profit or loss		Financial liabilities designated at fair value through profit or loss		Financial liabilities measured at amortised cost		Derivative liabilities (hedging)		Totals
Financial Liabilities
Financial liabilities at FVTPL		2,558,520,223		—		—		—		2,558,520,223
Financial liabilities designated at FVTPL		—		8,010,047,059		—		—		8,010,047,059
Derivative financial liabilities		1,919,915,454		—		—		4,309,200		1,924,224,654
Deposit liabilities		—		—		7,725,858,827		—		7,725,858,827
Borrowings		—		—		33,454,601,384		—		33,454,601,384
Other financial liabilities		—		—		2,210,452,579		—		2,210,452,579

		4,478,435,677		8,010,047,059		43,390,912,790		4,309,200		55,883,704,726

108

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

37. Financial Instruments

37.1 Fair Value of Financial Instruments by Class

Fair values of financial assets and financial liabilities as at December 31, 2025 and 2024, are as follows:


	2025				2024
(in thousands of Korean won)	Carrying amount		Fair value		Carrying amount		Fair value
Financial assets
Cash and deposits ²		4,106,569,157		4,106,569,157		3,322,504,801		3,322,504,801
Financial assets at FVTPL ¹		42,787,453,811		42,787,453,811		37,098,018,781		37,098,018,781
Derivative financial assets ¹		1,614,613,117		1,614,613,117		1,394,203,701		1,394,203,701
Financial assets at FVOCI		9,463,744,417		9,463,744,417		6,485,291,406		6,485,291,406
Loans measured at amortised cost		10,648,276,535		10,644,089,728		10,605,842,882		10,617,262,736
Other financial assets²		6,323,965,381		6,323,965,381		2,813,756,957		2,813,756,957

		74,944,622,418		74,940,435,611		61,719,618,528		61,731,038,382

¹	Deferred transaction gain or losses are adjusted in the carrying amount.

²	The fair value of cash and deposits, other financial assets, deposit liabilities and other financial liabilities with short maturity dates or uncertain maturity dates is presented at their book amounts.


	2025				2024
(in thousands of Korean won)	Carrying amount		Fair value		Carrying amount		Fair value
Financial liabilities
Deposit liabilities ²		12,110,773,883		12,110,773,883		7,725,858,827		7,725,858,827
Financial liabilities at FVTPL		2,910,712,724		2,910,712,724		2,558,520,223		2,558,520,223
Financial liabilities designated at FVTPL¹		7,996,513,415		7,996,513,415		8,010,047,059		8,010,047,059
Derivative financial liabilities¹		2,088,322,938		2,088,322,938		1,924,224,654		1,924,224,654
Borrowings		37,823,437,013		37,824,623,316		33,454,601,384		33,477,622,455
Other financial liabilities²		5,861,140,106		5,861,140,106		2,210,452,579		2,210,452,579

		68,790,900,079		68,792,086,382		55,883,704,726		55,906,725,797

¹	Deferred transaction gain or losses are adjusted in the carrying amount.

²	The fair value of cash and deposits, other financial assets, deposit liabilities and other financial liabilities with short maturity dates or uncertain maturity dates is presented at their book amounts.

Fair value is the price that would be received for selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. For each class of financial assets and financial liabilities, the Group discloses the fair value of that 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.

37.2 Fair Value Hierarchy

Financial instruments measured at fair value are categorized within the fair value hierarchy, and the defined levels are as follows:


Level 1		Quoted prices (unadjusted) in active markets for identical assets or liabilities

Level 2		Fair value using inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (that is, prices) or indirectly (that is, derived from prices)

Level 3		Fair value using inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs)

109

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

The inputs used to measure the fair value of an asset or a liability might be categorized within different levels of the fair value hierarchy. In those cases, 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. The observable input is generally used to the fair value measurement. However, 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.

(a)	Fair value hierarchy of financial instruments measured at fair value

The fair value hierarchy of financial assets and liabilities measured at fair value as at December 31, 2025 and 2024, are as follows:


	2025
(in thousands of Korean won)	Level 1		Level 2		Level 3		Total
Financial assets
Financial assets at FVTPL – debt instruments ¹		8,237,651,395		25,584,247,608		3,571,635,320		37,393,534,323
Financial assets at FVTPL - equity instruments		3,949,515,695		221,251,741		262,761,622		4,433,529,058
Financial assets at FVTPL - loans		—		—		960,390,430		960,390,430
Derivative financial assets¹		167,257,951		1,235,559,087		211,796,079		1,614,613,117
Financial assets at FVOCI		422,194,342		8,520,489,732		521,060,343		9,463,744,417

		12,776,619,383		35,561,548,168		5,527,643,794		53,865,811,345

Financial liabilities
Financial liabilities at FVTPL		2,910,712,724		—		—		2,910,712,724
Financial liabilities designated at FVTPL¹		507,899,785		1,391,155,566		6,097,458,064		7,996,513,415
Derivative financial liabilities¹		129,319,840		1,538,119,632		420,883,466		2,088,322,938

		3,547,932,349		2,929,275,198		6,518,341,530		12,995,549,077

¹	Deferred transaction gain or losses are adjusted in the carrying amount.


	2024
(in thousands of Korean won)	Level 1		Level 2		Level 3		Total
Financial assets
Financial assets at FVTPL – debt instruments ¹		7,516,138,758		23,854,828,909		2,831,841,789		34,202,809,456
Financial assets at FVTPL - equity instruments		1,476,635,311		209,125,333		271,825,317		1,957,585,961
Financial assets at FVTPL - loans		—		—		937,623,364		937,623,364
Derivative financial assets¹		17,271,119		1,126,405,562		250,527,020		1,394,203,701
Financial assets at FVOCI		123,148,567		5,937,790,330		424,352,509		6,485,291,406

		9,133,193,755		31,128,150,134		4,716,169,999		44,977,513,888

Financial liabilities
Financial liabilities at FVTPL		2,558,520,223		—		—		2,558,520,223
Financial liabilities designated at FVTPL¹		300,489,734		1,529,491,945		6,180,065,380		8,010,047,059
Derivative financial liabilities¹		180,111,464		1,150,851,062		593,262,128		1,924,224,654

		3,039,121,421		2,680,343,007		6,773,327,508		12,492,791,936

¹	Deferred transaction gain or losses are adjusted in the carrying amount.

110

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

37.3 Valuation techniques and inputs classified by Level 2

The details of the valuation techniques and inputs classified by Level 2 as at December 31, 2025 and 2024 are as follows:


(in thousands of Korean won)	2025	Valuation techniques	Inputs
Financial assets at FVTPL	25,805,499,349	DCF Model, Closed form formula, Monte Carlo model, Black Scholes model, Hull and White Model and others	Price of underlying asset, interest rate, dividend rate, volatility, discount rate and others
Derivative financial assets(trading)	1,235,559,087	DCF Model, Closed form formula, Monte Carlo model, Black Scholes model, Hull and White Model, Option Pricing model and others	Interest rate, price of underlying asset, exchange rate, credit spread, discount rate, volatility and others
Financial assets at FVOCI	8,520,489,732	DCF Model	Discount rate, Interest rate and others

	35,561,548,168

Financial liabilities designated at FVTPL	1,391,155,566	DCF Model, Closed form formula, Monte Carlo model, Black Scholes model, Hull and White Mode and others	Price of underlying asset, interest rate, dividend rate, volatility, discount rate
Derivative financial liabilities(trading)	1,535,208,432	DCF Model, Closed form formula, Monte Carlo model, Black Scholes model, Hull and White Model, Option Pricing model and others	Interest rate, price of underlying asset, exchange rate, credit spread, discount rate, volatility
Derivative financial liabilities(hedging)	2,911,200	DCF Model	Discount rate, exchange rate and others

	2,929,275,198


(in thousands of Korean won)	2024	Valuation techniques	Inputs
Financial assets at FVTPL	24,063,954,242	DCF Model, Closed form formula, Monte Carlo model, Black Scholes model, Hull and White Model, Net asset value and others	Price of underlying asset, interest rate, dividend rate, volatility, discount rate and others
Derivative financial assets(trading)	1,126,405,562	DCF Model, Closed form formula, Monte Carlo model, Black Scholes model, Hull and White Model, Net asset value and others	Interest rate, price of underlying asset, exchange rate, credit spread, discount rate, volatility and others
Financial assets at FVOCI	5,937,790,330	DCF Model	Discount rate, Interest rate and others

	31,128,150,134

Financial liabilities designated at FVTPL	1,529,491,945	DCF Model, Closed form formula, Monte Carlo model, Black Scholes model, Hull and White Model, Net asset value and others	Price of underlying asset, interest rate, dividend rate, volatility, discount rate

111

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

37.4 Level 3 of the Fair Value Hierarchy Disclosure

(a)	Valuation Process for Fair Value Measurements Categorized Within Level 3 of the Fair Value Hierarchy

The fair value of financial instruments classified as Level 3 is determined by external valuation or self-valuation of the Group. Unobservable inputs are produced by the external appraiser or internal valuation system and the Group reviews the adequacy of the inputs. The Risk Management Council reviews the adequacy of the assessment methodology and valuation method of external appraiser and the internal valuation. The agenda of the Risk Management Council is being reported or approved by the Risk Committee.

(b)	Changes in Fair Value Measurements Categories of the Fair Value hierarchy

The changes in financial instruments with Level 3 fair value for the years ended December 31, 2025 and 2024, are as follows:


	2025
(in thousands of Korean won)	Financial assets at FVTPL			Financial assets at FVOCI		Net derivatives			Financial liabilities designated at FVTPL
Beginning balance		4,041,290,469			424,352,508		(342,735,108	)		(6,180,065,380	)
Total gains or losses
Profit or loss		198,695,351			—		26,794,883			(398,176,409	)
Other comprehensive income		—			96,279,136		—			(2,870,980	)
Purchases		4,943,868,057			—		11,160			—
Sales		(4,395,018,375	)		428,699		(2,931	)		—
Issues		—			—		(6,709,605	)		(4,575,977,509	)
Settlements		—			—		117,963,852			5,059,632,214
Transfer within levels¹		5,951,870			—		(4,409,636	)		—

Ending balance		4,794,787,372			521,060,343		(209,087,385	)		(6,097,458,064	)

¹	Transfer within levels occurred due to the change in the availability of observable market data on the financial instruments.


	2024
(in thousands of Korean won)	Financial assets at FVTPL		Financial assets at FVOCI			Net derivatives			Financial liabilities designated at FVTPL
Beginning balance		3,324,114,863		435,887,600			(663,925,237	)		(7,037,370,505	)
Total gains or losses
Profit or loss		25,833,132		—			(254,234,941	)		(266,914,729	)
Other comprehensive income		—		(11,946,500	)		—			(10,815,593	)

112

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Notes to the Consolidated Financial Statements

December 31, 2025 and 2024


Purchases	2,746,821,655			3,907,013		—
Sales	(2,056,851,294	)	411,409	(5,253,440	)	—
Issues	—		—	(2,960,406	)	(4,200,663,614	)
Settlements	—		—	579,731,903		5,335,699,061
Transfer within levels¹	1,372,114		—	—		—

Ending balance	4,041,290,470		424,352,509	(342,735,108	)	(6,180,065,380	)

¹	Transfer within levels occurred due to the change in the availability of observable market data on the financial instruments.

In relation to changes in Level 3 fair value, total gains or losses related to the asset and liabilities held at the reporting date are included in the statements of comprehensive income for the years ended December 31, 2025 and 2024, are as follows:


	2025
(in thousands of Korean won)	Financial assets at FVTPL		Financial assets at FVOCI		Net derivatives		Financial liabilities designated at FVTPL
Profit or loss
Gain or loss on valuation of financial instruments¹		113,867,583		—		115,017,628		(165,004,897	)
Other comprehensive income
Gain or loss on valuation of financial assets at FVOCI²		—		96,279,136		—		—
Changes in fair value of financial liabilities at FVTPL due to the change of credit risk²		—		—		—		(2,734,778	)

		113,867,583		96,279,136		115,017,628		(167,739,675	)

¹	Included in gain or loss on valuation and disposal of financial instruments on the statements of Profit or Loss.

²	Included in other comprehensive income on the statements of comprehensive income.


	2024
(in thousands of Korean won)	Financial assets at FVTPL			Financial assets at FVOCI			Net derivatives			Financial liabilities designated at FVTPL
Profit or loss
Gain or loss on valuation of financial instruments¹		(22,868,020	)		—			(136,256,576	)		(39,526,996	)
Other comprehensive income
Gain or loss on valuation of financial assets at FVOCI²		—			(11,946,500	)		—			—
Changes in fair value of financial liabilities at FVTPL due to the change of credit risk²		—			—			—			(9,524,866	)

		(22,868,020	)		(11,946,500	)		(136,256,576	)		(49,051,862	)

¹	Included in gain or loss on valuation and disposal of financial instruments on the statements of Profit or Loss.

²	Included in other comprehensive income on the statements of comprehensive income.

113

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Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

(c)	Valuation techniques and the Inputs classified by Level 3

Valuation techniques and inputs for level 3 financial instruments are as follows:

2025

(in thousands of
Korean won)

Type

Fair value

Valuation
techniques

Inputs

Unobservable

input

Range

Relevance

Financial assets at FVTPL

Equity-linked
securities

80,970,708

DCF model,
Closed Form,
FDM, Monte
Carlo

Price of
underlying asset,
interest rate,
discount rate,

Underlying
asset volatility

0.01 ~ 0.29

Proportional

Correlation

-0.36 ~ 0.00

Proportional

Other OTC derivative linked contract

54,268,972

Black-Scholes Model, Binomial Tree model, Net asset value, etc.

volatility of underlying assets, correlation of underlying assets,

Correlation

Underlying asset volatility

-0.12 ~ 1.00

0.14 ~ 0.29

Proportional

Debt instruments

2,152,705,915

volatility of interest rate, probability of default

Correlation

Underlying asset volatility

-0.58 ~ 0.72

0.18 ~ 0.37

Proportional

Equity instruments

271,825,317

Underlying asset volatility

0.30 ~ 0.33

Proportional

Discount rate

0.06 ~ 0.15

Inversely proportional

Loans

937,623,364

Probability of default

—

Inversely proportional

Derivative financial assets (trading)

250,527,020

Underlying asset volatility

0.01 ~ 0.65

Proportional

Correlation

-0.58 ~ 1.00

Proportional

Financial assets at FVOCI

Equity instruments

424,352,509

DCF model, Risk-adjusted discount rate model, IMV model and others

Growth rate, discount rate

Growth rate

0.01 ~ 0.01

Proportional

Discount rate

0.14 ~ 0.16

Inversely proportional

4,716,169,998

Financial liabilities designated at FVTPL

Equity-linked securities sold

4,204,141,655

DCF model,
Closed Form,
FDM, Monte Carlo

Price of underlying asset, interest rate,

Underlying asset volatility

0.14 ~ 0.54

Proportional

discount rate,

Correlation

-0.58 ~ 0.75

Proportional

Derivatives linked securities sold Other OTC derivatives linked contract sold

1,914,786,835

61,136,890

Simulation, Hull
and White,
Black-Scholes
Model,
Binomial Tree
model, Net asset

dividend ratio, volatility of underlying assets, correlation of

Underlying asset volatility

Correlation

0.01 ~ 0.25

-0.58 ~ 1.00

Proportional

Derivative financial liabilities (trading)

593,262,128

value, etc.

underlying assets, volatility of interest rate,

Underlying asset volatility

0.22 ~ 0.65

Proportional

probability of default

Correlation

Underlying asset volatility

-0.58 ~ 0.74

0.01 ~ 0.65

Proportional

Correlation

-0.58 ~ 1.00

Proportional

6,773,327,508

¹	Derivatives which derive their value from interest rate, stock price, foreign exchange rate, commodity price, credit rate and others are included.

(d)	Sensitivity Analysis of Recurring Fair Value Measurements Categorized Within Level 3 of the Fair Value Hierarchy

Sensitivity analysis of financial instruments is performed to measure favorable and unfavorable changes in the fair value of financial instruments which are affected by the unobservable inputs, using a statistical technique. When the fair value is affected by more than two inputs, the amounts represent the most favorable or most unfavorable.

115

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Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

The results of the sensitivity analysis for the effect on profit or loss from changes in inputs for each financial instrument as at December 31, 2025 and 2024, are as follows.


	2025
	Profit and loss					Other comprehensive income
(in thousands of Korean won)	Favorable changes		Unfavorable changes			Favorable changes		Unfavorable changes
Financial assets
Financial assets at FVTPL¹		28,738,378		(20,755,257	)		—		—
Derivative financial assets¹		6,334,446		(6,760,857	)		—		—
Financial assets at FVOCI ²		—		—			37,999,056		(27,026,364	)

		35,072,824		(27,516,114	)		37,999,056		(27,026,364	)

Financial liabilities
Financial liabilities designated at FVTPL¹		14,921,342		(13,976,657	)		—		—
Derivative financial liabilities¹		9,342,825		(10,107,819	)		—		—

		24,264,167		(24,084,476	)		—		—

¹	Measured by changes in fair value based on the increasing or decreasing unobservable volatility of underlying assets by 10% or unobservable input(growth rate and discount rate) by 1%.

²	Measured by changes in fair value based on growth rate ((-)1~1%) and discount rate ((-)1~1%) that are unobservable inputs.


	2024
	Profit and loss					Other comprehensive income
(in thousands of Korean won)	Favorable changes		Unfavorable changes			Favorable changes		Unfavorable changes
Financial assets
Financial assets at FVTPL¹		26,980,468		(17,573,732	)		—		—
Derivative financial assets¹		14,841,168		(16,508,885	)		—		—
Financial assets at FVOCI ²		—		—			19,296,520		(14,882,691	)

		41,821,636		(34,082,617	)		19,296,520		(14,882,691	)

Financial liabilities
Financial liabilities designated at FVTPL¹		16,840,216		(16,759,886	)		—		—
Derivative financial liabilities¹		22,092,417		(24,479,482	)		—		—

		38,932,633		(41,239,368	)		—		—

¹	Measured by changes in fair value based on the increasing or decreasing unobservable volatility of underlying assets by 10% or unobservable input(growth rate and discount rate) by 1%.

²	Measured by changes in fair value based on growth rate ((-)1~1%) and discount rate ((-)1~1%) that are unobservable inputs.

(e)	Day 1 Profit and Loss

If the Group uses a valuation technique that uses data not obtained from observable markets for the fair value at initial recognition of financial instruments, 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 amortised by using the straight-line method over the life of the financial instruments. If the fair value of the financial instruments can be subsequently determined using observable market inputs, the remaining deferred amount is immediately recognized in profit or loss.

116

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

The aggregate difference yet to be recognized in profit or loss at the beginning and end of the year, and the changes in the balance of this difference, are as follows:


(in thousands of Korean won)	2025			2024
Balances at the beginning of the year (A)		18,603,619			32,605,297
Incurred during the year (B)		78,864,105			49,077,880
Amounts recognized in profit or loss during the year (C)		(60,941,447	)		(63,079,559	)

Balances at the end of year (A+B+C)		36,526,277			18,603,618

37.5 Fair value hierarchy of financial instruments which the fair value is disclosed

(a)	The fair value hierarchy of financial assets and liabilities which the fair value is disclosed as at December 31, 2025 and 2024, are as follows:


	2025
(in thousands of Korean won)	Level 1		Level 2		Level 3		Total
Financial assets
Loans measured at amortised cost		—		—		10,644,089,728		10,644,089,728
Financial liabilities
Borrowings		—		—		37,824,623,316		37,824,623,316

Cash and deposits, other financial assets, deposit liabilities and other financial liabilities that use book amount as a substitute for fair value because their maturities are relatively short or are not set, are not disclosed.


	2024
(in thousands of Korean won)	Level 1		Level 2		Level 3		Total
Financial assets
Loans measured at amortised cost		—		—		10,617,262,736		10,617,262,736
Financial liabilities
Borrowings		—		—		33,477,622,455		33,477,622,455

(b)	Valuation techniques and inputs


		Valuation technique and inputs
Cash and deposits		The fair value of cash is the same as the book amount. The book amount is used as a substitute value of fair value for the majority of deposits consisting of overnight deposits and deposits with variable interest rate.
Loans measured at amortised cost		The fair values are calculated by discount rate considering market interest rates and borrower’s credit risk on expected cash flows.
Deposit liabilities and borrowings		The book amount is used as a substitute value of fair value for demand deposit liabilities, bank overdrafts and call money. With regard to the other deposits and borrowings, the fair values are calculated by discount rate considering residual risks at market interest rates on contractual cash flows.
Other financial assets and liabilities		As a temporary transitional account derived from various transactions, the book amount is used as a substitute value of fair value instead of applying DCF due to the relatively short-term or indefinite maturity.

117

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

37.6 Derecognition of financial assets

The Group continues to recognize bonds sold under repurchase agreements and securities lending agreement, because the Group transferred the financial asset, but the assets does not meet the derecognition criteria. Due to the nature of transaction that bonds sold under repurchase agreements are under repurchase condition with fixed price and securities lending agreement contains the retransfer back condition by the end of lending period, the Group is liable to almost all risks and rewards related to the ownership of the financial assets.

As at December 31, 2025 and 2024, relevant information about transferred financial assets which do not qualify for derecognition are as follows:


	2025
	Financial assets at FVTPL				Financial assets at FVOCI
(in thousands of Korean won)	Debt instruments^{1,2, 3}		Equity instruments²		Debt instruments^1,3		Equity instruments
Carrying amount of transferred assets		4,157,455,753		631,623		2,601,915,338		—
Carrying amount of related liabilities		4,188,634,687		—		2,505,325,431		—

¹	Transferred debt instruments under repurchase agreements.

²	Transferred equity instruments and debt instruments under securities lending agreements.

³	As at December 31, 2025, the accrued interests related to debt securities of W 36,562 million is excluded.


	2024
	Financial assets at FVTPL				Financial assets at FVOCI
(in thousands of Korean won)	Debt instruments^{1,2, 3}		Equity instruments²		Debt instruments^1,3		Equity instruments
Carrying amount of transferred assets		4,245,358,415		6,046,174		1,811,592,215		—
Carrying amount of related liabilities		4,138,807,782		—		1,774,216,825		—

¹	Transferred debt instruments under repurchase agreements.

²	Transferred equity instruments and debt instruments under securities lending agreements.

³	As at December 31, 2024, the accrued interests related to debt securities of W 44,110 million is excluded.

Meanwhile, the Group provided additional credit enhancements such as purchase agreements in addition to recourse limited to transferred assets to subsidiaries established for asset securitization purposes.

Details of carrying amounts of the underlying assets and the associated liabilities as of December 31, 2025 and 2024, are as follows:


(In thousands of Korean won)		2025		2024
Underlying assets	Financial assets at fair value through profit or loss		319,912,993		93,804,238
	Loans measured at amortized cost¹		1,457,212,202		2,271,500,415

			1,777,125,195		2,365,304,653

Associated liabilities	Debentures		1,608,189,688		2,340,021,256

¹	The amounts disclosed in above table are before deduction of allowances.

118

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

38. Financial Risk Management

38.1 Summary

38.1.1 Overview of Financial Risk Management Policy

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

The note regarding financial risk management provides information about the risks that the Group is exposed to, including the objectives, policies and processes for assessing and managing the risks and net operating capital ratio management. Additional quantitative information is disclosed throughout the notes to the consolidated financial statements.

The Group’s risk management system focuses on increasing transparency, developing the risk management environment, preventing transmission of risk to other related subsidiaries, and the preemptive response to risk due to rapid changes in the financial environment to support the Group’s long-term strategy and business decisions efficiently. Credit risk, liquidity risk, market risk, operational risk, and credit concentration risk are recognized as the Group’s key risks. These risks are measured and managed by quantification as regulatory capital and VaR (Value at Risk) using a statistical method.

38.1.2 Risk Management Organization

(a) Board of Directors

Board of Directors are the ultimate decision-making authority that appoint and dismiss Risk Management Committee, establish and amend the Risk Management Committee policies, establish the Group’s criteria for risk limit, decide on basic policy of risk management, and approve large-scale investments.

(b) Risk Management Committee

The Risk Management Committee consists of more than three directors appointed by the Board of Directors (including more than a half of external director). The Risk Management Committee executes the operations delegated by Board Of Directors in accordance with Risk Management Committee policy

Risk Management Council consists of members appointed by Company’s executives, including the director who is responsible for risk management, compliance, planning/management. Also the organization is delegated by Risk Management Committee to perform deliberation/resolution for major policies and matters related to the risk.

(d) Risk management department

Risk management department carries out practical tasks, required for risk management of the Group, such as supporting the Risk Management Committee, reporting the Group’s risk level and computing net operating capital ratio.

38.1.3 Risk Management System

In order to establishing risk management structure, the Group built the total risk management system, ERMS (Enterprise Risk Management System), which is designed for reasonable price valuation against risks and the management of risk limitation to raise the soundness of assets and allocate resources efficiently. Moreover, the Group performs business with risk management basis in mainly by constructing RAPM (Risk Adjusted Performance Measure) and enlarging the portion of performance evaluation.

119

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

38.1.4 Risk Management Strategy and Policy

As an allocation of risk capital and risk limit establishment process, the risk capital is allocated through resolution of Risk Management Committee meetings, and the amount of risk capital is anticipated for each risk sector, business sector and department by reflecting annual management strategy and business plans.

38.2 Credit Risk

38.2.1 Overview of Credit Risk

The Group is exposed to certain level of credit risk and the credit risk is the risk of possible loss to portfolio due to counterparty’s credit event and breach of covenant. Credit risk exposure occurs in investment activities such as loans, debt instruments, derivative transactions, and non-trading accounts, or can exist in relating to off-balance accounts.

38.2.2 Credit Risk Management

Credit risk is the risk of financial loss to the Group if a customer or counterparty of a financial instrument fails to meet its contractual obligations. If the trading department of the Group wants to deal with the counterparty that may cause the credit risk, the trading department submits product management plan and application in advance to get approval by the Risk Management Council and the Risk Management Committee. The deal is executed when the approval by the Risk Management Council and the Risk Management Committee is completed. Credit risk limit depends on 1) standard credit risk limit, 2) concentration limit on the same person and 3) credit rating and additional limit may be added by the trading department. In addition, credit VaR is measured in addition to the credit management listed above and credit VaR due to the internal model is operated by the credit manager measurement system of the risk metrics group. Limit management is performed on a daily basis and stress test is performed on a regular basis and in case of excess of the limit, trading department expedite the process with the procedure set by the risk management department.

38.2.3 Maximum Exposure to Credit Risk

The maximum exposure of credit risk related to the off-balance as at December 31, 2025 and 2024, are as follows:


(in thousands of Korean won)	2025		2024
Agreement to purchase the commercial papers ¹		1,259,846,340		824,171,844
Guarantees and loan commitment		1,581,526,531		1,608,313,801

		2,841,372,871		2,432,485,645

¹	According to the above arrangement, the Group holds the asset-backed short-term bonds amounting to W 86,450 million and W 278,820 million as at December 31, 2025 and 2024, respectively.

The Group does not disclose financial assets (except above contracts) whose carrying amount represents the maximum exposure to credit risk.

120

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

38.2.4 Credit Risk Concentration Analysis

(a) Loans

Most of counterparties of loan transactions, before considering collaterals and other credit reinforcements, are concentrated in Korea. The ratios of loans to individuals and corporations and related allowances as at December 31, 2025 and 2024, are as follows:


	2025
(in thousands of Korean won)	Loans		Ratio (%)		Allowances			Carrying amount
Individuals		4,331,322,187		39.53		(6,163,898	)		4,325,158,289
Corporations		6,626,428,703		60.47		(303,310,457	)		6,323,118,246

		10,957,750,890		100.00		(309,474,355	)		10,648,276,535


	2024
(in thousands of Korean won)	Loans		Ratio (%)		Allowances			Carrying amount
Individuals		2,941,709,421		24.98		(6,513,007	)		2,935,196,414
Corporations		8,834,376,507		75.02		(226,106,675	)		8,608,269,832

		11,776,085,928		100.00		(232,619,682	)		11,543,466,246

The details of the Group’s loans by industry as at December 31, 2025 and 2024, are as follows:


	2025
(in thousands of Korean won)	Loans		Ratio (%)		Allowances			Carrying amount
Financial service		4,549,752,186		41.52		(247,339,457	)		4,302,412,729
Manufacturing		240,473,566		2.19		(1,685,832	)		238,787,734
Service		1,369,764,379		12.50		(53,293,224	)		1,316,471,155
Others		466,438,573		4.26		(991,944	)		465,446,629
Individuals		4,331,322,187		39.53		(6,163,899	)		4,325,158,288

		10,957,750,891		100.00		(309,474,356	)		10,648,276,535


	2024
(in thousands of Korean won)	Loans		Ratio (%)		Allowances			Carrying amount
Financial service		6,601,761,843		56.06		(182,838,151	)		6,418,923,692
Manufacturing		560,526,792		4.76		(3,170,539	)		557,356,253
Service		1,067,869,776		9.07		(38,517,398	)		1,029,352,378
Others		604,218,096		5.13		(1,580,587	)		602,637,509
Individuals		2,941,709,421		24.98		(6,513,007	)		2,935,196,414

		11,776,085,928		100.00		(232,619,682	)		11,543,466,246

121

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

(b) Deposits, Securities (except equity instruments) and Derivatives

Most of deposits, securities (except equity instruments) and derivatives, before considering collaterals and other credit reinforcements, are concentrated in securities issued in Korea. The details of the Group’s securities (except equity instruments) by industry as at December 31, 2025 and 2024, are as follows:


	2025
(in thousands of Korean won)	Amount		Ratio (%)		Allowances			Carrying amount
Deposits measured at amortised cost
Banking and insurance		3,474,773,373		100.00		(1,059,769	)		3,473,713,604

		3,474,773,373		100.00		(1,059,769	)		3,473,713,604

Securities at FVTPL
Government and government funded institutions		14,054,984,211		37.59		—			14,054,984,211
Banking and insurance		12,115,937,613		32.40		—			12,115,937,613
Others		11,222,612,499		30.01		—			11,222,612,499

		37,393,534,323		100.00		—			37,393,534,323

Derivatives financial assets
Government and government funded institutions		18,369,732		1.14		—			18,369,732
Banking and insurance		1,530,397,620		94.78		—			1,530,397,620
Others		65,845,765		4.08		—			65,845,765

		1,614,613,117		100.00		—			1,614,613,117

Securities at FVOCI
Government and government funded institutions		2,523,115,968		31.69		—			2,523,115,968
Banking and insurance		2,592,129,018		32.56		—			2,592,129,018
Others		2,846,389,506		35.75		—			2,846,389,506

		7,961,634,492		100.00		—			7,961,634,492

		50,444,555,305				(1,059,769	)		50,443,495,536


	2024
(in thousands of Korean won)	Amount		Ratio (%)		Allowances			Carrying amount
Deposits measured at amortised cost
Banking and insurance		2,540,156,180		100.00		(738,213	)		2,539,417,967

		2,540,156,180		100.00		(738,213	)		2,539,417,967

Securities at FVTPL
Government and government funded institutions		13,578,873,618		39.70		—			13,578,873,618
Banking and insurance		11,270,347,932		32.95		—			11,270,347,932
Others		9,353,587,907		27.35		—			9,353,587,907

		34,202,809,457		100.00		—			34,202,809,457

Derivatives financial assets
Government and government funded institutions		1,436,669		0.10		—			1,436,669
Banking and insurance		1,347,178,446		96.63		—			1,347,178,446
Others		45,588,586		3.27		—			45,588,586

		1,394,203,701		100.00		—			1,394,203,701

Securities at FVOCI
Government and government funded institutions		2,108,565,891		41.11		—			2,108,565,891
Banking and insurance		1,767,614,427		34.47		—			1,767,614,427
Others		1,252,342,610		24.42		—			1,252,342,610

		5,128,522,928		100.00		—			5,128,522,928

		43,265,692,266				(738,213	)		43,264,954,053

122

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

38.2.5 Credit Quality of Financial Assets

(a) Loans

The credit quality of loans measured at amortised cost and loans measured at fair value through profit or loss as at December 31, 2025 and 2024, are as follows:


	2025
(in thousands of Korean won)	The financial instruments applying 12-month expected credit losses		The financial instruments applying lifetime expected credit losses				The financial instruments applying Credit loss model		The financial instruments not applying expected credit loss model		Total
			Non-impaired		Impaired		The financial instruments applying Credit loss model				Total
Loans measured at amortised cost ¹
Corporates
Grade 1		3,678,792,235		—		—		—		—		3,678,792,235
Grade 2		2,310,742,921		—		—		—		—		2,310,742,921
Grade 3		30,000,000		115,930,236		—		—		—		145,930,236
Grade 4		46,413,654		300,524,105		—		—		—		346,937,759
Grade 5		—		—		144,025,553		—		—		144,025,553

		6,065,948,810		416,454,341		144,025,553		—		—		6,626,428,704

Retails
Grade 1		4,325,038,175		—		—		—		—		4,325,038,175
Grade 2		120,924		—		—		—		—		120,924
Grade 3		—		—		—		—		—		—
Grade 4		—		—		—		—		—		—
Grade 5		—		—		6,163,088		—		—		6,163,088

		4,325,159,099		—		6,163,088		—		—		4,331,322,187

Loans measured at FVTPL
Corporates
Grade 1		—		—		—		—		960,390,430		960,390,430
Grade 2		—		—		—		—		—		—
Grade 3		—		—		—		—		—		—
Grade 4		—		—		—		—		—		—
Grade 5		—		—		—		—		—		—

		—		—		—		—		960,390,430		960,390,430

		10,391,107,909		416,454,341		150,188,641		—		960,390,430		11,918,141,321

¹	The amounts disclosed in above table are before deduction of allowances

2024

(in thousands of Korean won)

The
financial
instruments
applying
12-month
expected
credit losses

The financial instruments
applying lifetime expected
credit losses

The financial
instruments
applying
Credit loss
model

The financial
instruments
not applying
expected
credit loss
model

Total

Non-impaired

Impaired

Loans measured at amortised cost ¹

Corporates

Grade 1

4,388,199,086

—

4,388,199,086

123

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024


Grade 2	2,599,570,638	15,388,889	—	—	—	2,614,959,527
Grade 3	21,023,545	644,666,419	—	—	—	665,689,964
Grade 4	42,091,180	108,462,000	—	—	—	150,553,180
Grade 5	—	—	77,351,386	—	—	77,351,386

	7,050,884,449	768,517,308	77,351,386	—	—	7,896,753,143

Retails
Grade 1	2,933,509,136	—	—	—	—	2,933,509,136
Grade 2	252,574	—	—	—	—	252,574
Grade 3	—	—	—	—	—	—
Grade 4	1,434,704	—	—	—	—	1,434,704
Grade 5	—	—	6,513,007	—	—	6,513,007

	2,935,196,414	—	6,513,007	—	—	2,941,709,421

Loans measured at FVTPL
Corporates
Grade 1	—	—	—	—	937,623,364	937,623,364
Grade 2	—	—	—	—	—	—
Grade 3	—	—	—	—	—	—
Grade 4	—	—	—	—	—	—
Grade 5	—	—	—	—	—	—

	—	—	—	—	937,623,364	937,623,364

	9,986,080,863	768,517,308	83,864,393	—	937,623,364	11,776,085,928

¹	The amounts disclosed in above table are before deduction of allowances


Ranges	Corporates	Retails
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	Below CC	Below 12 grade

The effect of measured credit risk which is released due to enhancement of collateral and other credit supplements secured for loans as at December 31, 2025 and 2024, are as follows:


	2025
(in thousands of Korean won)	The financial instruments applying 12-month expected credit losses		The financial instruments applying lifetime expected credit losses				The financial instruments applying Credit loss model		The financial instruments not applying expected credit loss model		Total
			Non-impaired		Impaired		The financial instruments applying Credit loss model				Total
Guarantee		42,295,857		—		—		—		28,527,899		70,823,756
Real estate		—		—		292,871		—		—		292,871
Securities		8,098,039,146		—		—		—		444,339,137		8,542,378,283

		8,140,335,003		—		292,871		—		472,867,036		8,613,494,910

124

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024


	2024
(in thousands of Korean won)	The financial instruments applying 12-month expected credit losses		The financial instruments applying lifetime expected credit losses				The financial instruments applying Credit loss model		The financial instruments not applying expected credit loss model		Total
			Non-impaired		Impaired		The financial instruments applying Credit loss model				Total
Guarantee		23,488,801		—		—		—		—		23,488,801
Real estate		242,619,244		92,237,004		290,222		—		—		335,146,470
Securities		8,083,758,642		2,258,741		—		—		752,340,997		8,838,358,380

		8,349,866,687		94,495,745		290,222		—		752,340,997		9,196,993,651

(b) Securities (debt instruments)

The credit quality of securities (debt instruments) as at December 31, 2025 and 2024, are as follows:


	2025
(in thousands of Korean won)	The financial instruments applying 12-month expected credit losses		The financial instruments applying lifetime expected credit losses				The financial instruments applying credit loss model		The financial instruments not applying expected credit loss model		Total
			Non-impaired		Impaired		The financial instruments applying credit loss model				Total
Financial assets at FVOCI ¹
Grade 1		6,894,636,112		—		—		—		—		6,894,636,112
Grade 2		1,066,998,379		—		—		—		—		1,066,998,379
Grade 3		—		—		—		—		—		—
Grade 4		—		—		—		—		—		—
Grade 5		—		—		—		—		—		—

		7,961,634,491		—		—		—		—		7,961,634,491

¹	Before deduction of allowances


	2024
(in thousands of Korean won)	The financial instruments applying 12-month expected credit losses		The financial instruments applying lifetime expected credit losses				The financial instruments applying credit loss model		The financial instruments not applying expected credit loss model		Total
			Non-impaired		Impaired		The financial instruments applying credit loss model				Total
Financial assets at FVOCI ¹
Grade 1		4,711,912,740		—		—		—		—		4,711,912,740
Grade 2		416,610,187		—		—		—		—		416,610,187
Grade 3		—		—		—		—		—		—
Grade 4		—		—		—		—		—		—
Grade 5		—		—		—		—		—		—

		5,128,522,927		—		—		—		—		5,128,522,927

¹	Before deduction of allowances

125

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

The Group’s standard for credit quality of securities(except equity investments) linked to credit rating presented by 3^rd party credit rating institutions is as follows.

Domestic

Foreign

Credit
Quality

KIS

NICE

FnPricing

S&P

Fitch-IBCA

Moody’s

Grade 1

AA0 to AAA

A- to AAA

A3 to Aaa

Grade 2

A-To AA-

A- To AA-

BBB- to BBB+

Baa3 to Baa1

Grade 3

BBB0 to BBB+

BB to BB+

Ba2 to Ba1

Grade 4

BB0 to BBB-

B+ to BB-

B1 to Ba3

Grade 5

Below BB-

Below B

Below B2

The classification of credit quality for debt instruments in Korean won is based on lowest credit rating among the one of three domestic credit rating institutions and the classification of credit quality for debt instruments in foreign currency is based on lowest credit rating among the one of three foreign credit rating institutions.

The credit quality of deposits as at December 31, 2025 and 2024, are as follows:


	2025
(in thousands of Korean won)	The financial instruments applying 12-month expected credit losses		The financial instruments applying lifetime expected credit losses				The financial instruments applying credit loss model		Total
			Non-impaired		Impaired		The financial instruments applying credit loss model		Total
Deposits measured at amortised cost ¹
Grade 1		3,474,773,373		—		—		—		3,474,773,373
Grade 2		—		—		—		—		—
Grade 3		—		—		—		—		—
Grade 4		—		—		—		—		—
Grade 5		—		—		—		—		—

		3,474,773,373		—		—		—		3,474,773,373

¹	Before deduction of allowances


	2024
(in thousands of Korean won)	The financial instruments applying 12-month expected credit losses		The financial instruments applying lifetime expected credit losses				The financial instruments applying credit loss model		Total
			Non-impaired		Impaired		The financial instruments applying credit loss model		Total
Deposits measured at amortised cost ¹
Grade 1		2,540,156,180		—		—		—		2,540,156,180
Grade 2		—		—		—		—		—
Grade 3		—		—		—		—		—
Grade 4		—		—		—		—		—
Grade 5		—		—		—		—		—

		2,540,156,180		—		—		—		2,540,156,180

¹	Before deduction of allowances

The Group’s standard for credit quality of deposits is same as the one of debt securities.

126

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

(d) Commitments

The credit quality of commitments as at December 31, 2025 and 2024, are as follows:


	2025
(in thousands of Korean won)	The financial instruments applying 12-month expected credit losses		The financial instruments applying lifetime expected credit losses				The financial instruments applying credit loss model		Total
			Non-impaired		Impaired		The financial instruments applying credit loss model		Total
Guaranteed payment and commitment
Grade 1		942,025,741		—		—		—		942,025,741
Grade 2		1,268,934,683		—		—		—		1,268,934,683
Grade 3		78,914,494		22,725,000		—		—		101,639,494
Grade 4		493,607,523		35,165,430		—		—		528,772,953
Grade 5		—		—		—		—		—

		2,783,482,441		57,890,430		—		—		2,841,372,871


	2024
(in thousands of Korean won)	The financial instruments applying 12-month expected credit losses		The financial instruments applying lifetime expected credit losses				The financial instruments applying credit loss model		Total
			Non-impaired		Impaired		The financial instruments applying credit loss model		Total
Guaranteed payment and commitment
Grade 1		663,275,523		—		—		—		663,275,523
Grade 2		1,100,207,671		911,111		—		—		1,101,118,782
Grade 3		84,500,179		49,243,753		—		—		133,743,932
Grade 4		514,287,729		20,059,679		—		—		534,347,408
Grade 5		—		—		—		—		—

		2,362,271,102		70,214,543		—		—		2,432,485,645

(e) Other receivables from securities transactions

Among loan and receivables which are classified as other financial assets, other receivables from securities transactions, as at December 31, 2025 and 2024, are as follows:


(in thousands of Korean won)	2025		2024
Other receivables related to proprietary trading		219,109,166		209,127,588
Other receivables related to brokerage transactions		4,831,990,679		1,652,090,991

The Group recognizes receivables and payables between Korea Exchange (Clearing and Settlement Organization) and customers regarding securities brokerage transactions on the trade date. The Group is exposed to credit risks between the trade date and settlement date (generally less than two business days from the trade date) relating to investment brokerage business, which is standardized by related regulations. As a central counterparty, Korea Exchange mitigates the payment default risk by managing collective fund for default loss, and the Group mitigates customer default risk through margin requirements system. Also, if the customers can not pay by the settlement date, the Group can collect the receivables through covering. Therefore, credit risk that the Group actually bears is linked to the price fluctuation risk of securities between the trade date and the settlement date.

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Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

In addition, related to standardized investment trading of securities, the Group recognizes the on-the-counter transactions on the Korea Exchange, the clearing and settlement institution, and over-the-counter transactions with the customer on the date which the sales contract is signed for the assets and liabilities. Accordingly, the Company is exposed to the risk of price fluctuation risk and credit risk of the securities subject to trading during the period between the date of execution of the sales contract and the settlement date.

38.3 Liquidity Risk

38.3.1 Overview of Liquidity Risk

Liquidity risk is the risk of insolvency or loss due to a disparity between the inflow and outflow of funds, unexpected outflow of funds, and obtaining funds at a high price 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 all financial assets, liabilities and off-statement of financial position items such as commitments and financial guarantee contracts. The Group discloses them by maturity groups: Up to one month, between over one month and three months, between over three months and twelve months, between over one year and five years, and over five years.

38.3.2 Liquidity Risk Management Policy

The Group has established an appropriate liquidity risk management framework for the management of the Group’s short-, medium- and long-term funding and liquidity management requirements. The Group manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows and by matching the maturity profiles of financial assets and liabilities. Meanwhile, additional details of unused funding arrangement to reduce liquidity risk that the Group holds at its discretion are discussed in Note 41.

38.3.3 Analysis on Remaining Contractual Maturities of Financial Liabilities

Cash flows disclosed for the maturity analysis are undiscounted contractual principal and interest to be received (paid) and, thus, differ from the amount in the financial statements which is based on the present value of expected cash flows in some cases.

The remaining contractual maturities of financial liabilities as at December 31, 2025 and 2024, are as follows:


	2025
(in thousands of Korean won)	On demand		Up to one month		One to three months		Three to 12 months		12 months to five years		More than five years		Total
Financial liabilities
Financial liabilities at FVTPL		2,910,712,724		—		—		—		—		—		2,910,712,724
Financial liabilities designated at FVTPL ¹		7,996,513,415		—		—		—		—		—		7,996,513,415
Derivatives (trading) ²		2,085,411,738		—		—		—		—		—		2,085,411,738
Derivatives (hedge)		—		—		2,911,200		—		—		—		2,911,200
Deposit liabilities ³		12,110,773,883		—		—		—		—		—		12,110,773,883
Borrowings		11,632,795,178		8,790,095,974		3,781,201,622		10,851,412,625		3,160,804,746		21,622,839		38,237,932,984
Other financial liabilities		24,423,633		5,559,191,643		7,877,257		28,506,287		63,014,136		3,026,869		5,686,039,826
Guaranteed payments and commitment ⁴		2,841,372,871		—		—		—		—		—		2,841,372,871

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Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

¹	Derivatives-linked securities as financial liabilities designated at FVTPL are classified as ‘on demand’ because derivatives-linked securities are subject to early settlement.

²	Derivatives are classified as ‘on demand’ because contract maturity is not necessary in understanding the cash flow timing of the derivatives

³	Deposits that are contractually repayable on demand or on short notice are classified as ‘on demand’ category.

⁴	With respect to the guaranteed payments and commitments, the amounts included above, which the Group might pay at maximum based on the contract, if the warrantee claims the entire amount of the guarantee, are classified on the basis of the earliest period when those agreements may be executed.


	2024
(in thousands of Korean won)	On demand		Up to one month		One to three months		Three to 12 months		12 months to five years		More than five years		Total
Financial liabilities
Financial liabilities at FVTPL		2,558,520,223		—		—		—		—		—		2,558,520,223
Financial liabilities designated at FVTPL ¹		8,010,047,059		—		—		—		—		—		8,010,047,059
Derivatives (trading) ²		1,919,915,454		—		—		—		—		—		1,919,915,454
Derivatives (hedge)		—		—		—		4,309,200		—		—		4,309,200
Deposit liabilities ³		7,725,858,827		—		—		—		—		—		7,725,858,827
Borrowings		10,611,705,622		7,715,085,405		2,850,887,493		9,780,216,826		2,876,120,052		20,323,297		33,854,338,694
Other financial liabilities		17,893,430		1,927,935,637		7,749,439		28,071,301		86,844,309		3,954,341		2,072,448,458
Guaranteed payments and commitment ⁴		2,432,485,645		—		—		—		—		—		2,432,485,645

¹	Derivatives-linked securities as financial liabilities designated at FVTPL are classified as ‘on demand’ because derivatives-linked securities are subject to early settlement.

²	Derivatives are classified as ‘on demand’ because contract maturity is not necessary in understanding the cash flow timing of the derivatives

³	Deposits that are contractually repayable on demand or on short notice are classified as ‘on demand’ category.

⁴	With respect to the guaranteed payments and commitments, the amounts included above, which the Group might pay at maximum based on the contract, if the warrantee claims the entire amount of the guarantee, are classified on the basis of the earliest period when those agreements may be executed.

38.4 Market Risk

38.4.1 Overview of Market Risk

Market risk refers to the risk that the value of a position held by the Group may fluctuate due to price fluctuations of market factors such as stock, interest rates, foreign exchange rates, commodity and others.

Market risk is daily managed by establishing the limitations considering products’ natures such as position limitations, loss limitations, VaR limitations, sensitivity limitations (duration, delta, gamma, vega, others) and others. Relevant business procedures are processed by written regulations and guidelines.

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Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

38.4.2 Value at Risk (“VaR”)

The Exposure to market risk is measured by the Value at Risk (VaR). VaR is the potential loss that can occur in the holding position when the market price moves in an adverse direction within a given confidence level for a given holding period in the normal market.

Historical simulation model is used to calculate 10days VaR. Historical simulation model is based on past changes of market variables without assuming a specific probability distribution.

The Group uses the 10-day return of the past two-year time series of the asset risk factor and uses the 99% confidence level of the two-year time series of the portfolio. 10days VaR that is under 99% of confidence level that the Group uses reflects daily losses do not exceed the reported VaR with 99% chance.

The average, minimum and maximum amount of the Group’s VaR (99%, 10 days) as at December 31, 2025 and 2024, are as follows:

2025

(in thousands of Korean won)

Average

Maximum

Minimum

December 31,
2025

Total VaR

46,894,143

65,355,956

30,981,690

45,316,446

2024

(in thousands of Korean won)

Average

Maximum

Minimum

December 31,
2024

Total VaR

32,714,101

52,796,377

15,391,508

31,000,920

38.4.3 Risk Management by Market Risk Factors

The Group’s market risk is comprised of interest rate risk, foreign exchange rate risk and stock price risk.

(a) Stock price risk

Stock price risk arises from the Group’s foreign currency stocks and Korean won stocks.

Hedging instruments of Equity Linked Security and Equity Linked Warrant comprise most of stock trading portfolio and certain security proprietary trading is composed of trading securities on the exchange, futures contracts maturing in a month or two, and others under the restriction of position limitation, sale at loss, loss limitation, and others. Marketable stocks among non-trading positions and stock beneficiary certificates are included in stock price risk as market VaR is computed.

Risk Management Council allocates position and loss limitations, and risk management department monitors asset management department’s possible breach of limitations and other special matters on a daily basis.

(b) Interest rate risk

Trading position interest rate risk usually arises from debt instruments denominated in Korean won. The Group’s trading strategy is to benefit from short-term movements in the prices of debt instruments arising from changes in interest rates.

The product prices of the Group’s trading accounts are disclosed daily. The risks related to trading accounts are managed by using market price based method such as market VaR and sensitivity analysis.

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Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

Foreign exchange rate risk arises through ownership of assets and liabilities, denominated in currencies other than Korean won, from non-trading positions, or through foreign currency forward contracts, currency swaps and foreign currency trading securities.

The Group computes foreign currency position’s net position regularly to follow the Regulation on Financial Investment Business and reports it to the supervisory body.

Also, the Group manages the risk for total position exposed to foreign exchange rate including non-trading position by using market price base method such as market VaR and sensitivity analysis.

38.4.4 Current Status of Interest Rate Risk Management

The Group is closely monitoring the outputs of various industry working groups and markets managing the transition to new interest rate index, including announcements from IBOR regulators and various consultative bodies involved in the transition to alternative interest rates. In response to these announcements, the group established and IBOR transition plan comparing end-to-end workflows across risk management, according, taxation, legal, information technology and customer management functions. In accordance with this plan, the Group has substantially completed the required transition and replacement processes. Oversight of the plan and monitoring of its progress are led by CFO(Chief Financial Officer), with significant matters reported to the Boarf of Directors. The objective of the plan is to identify the impacts and risks arising from interest rate benchmark reform across the Group’s business operations and to prepare for and execute an orderly transition to alternative reference interest rates.

As at December 31, 2025 and 2024, the Group has no financial instruments that had not yet transitioned to alternative reference interest rates.

38.5 Operational Risk

38.5.1 Concept

The Group defines operational risk to the extent of financial risk and non-financial risk incurred by unreasonable or wrong internal process, labor, system and external incidents.

38.5.2 Operational Risk Management

The purpose of operational risk management is to control activity through continuous improvement of internal controls, performing proactive preventive control, proliferation of culture of risk management by establishing internal control that could respond quickly against change of business environment. OMRS (Operational Risk Management System supports performing overall risk management such as recognition of operational risk, evaluation and monitoring. Periodically, through RCSA (Risk Control Self Assessment), management of KRI (Key Risk Indicator), management of data loss and related preparation of countermeasures, it controls the risks in advance, as well as collecting data for future advanced management method.

38.6 Capital Management

Main purpose of the capital risk management of the Group is optimizing use of capital and sustaining healthy financial status in order to maximize shareholder value. The Group has performed capital risk management through estimating net capital ratio based on ‘Capital Market and Financial Investment Business Act’, enforced in February 2009.

Net capital ratio is the net capital minus the total risk amount divided by the essential equity to sustain per each business unit. [(Net capital – total risk amounts) / essential equity to sustain per each business unit]. This formula is calculated based on the financial statements amount.

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Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

The net capital is calculated by subtracting deductible items from and including additional item to financial investor’s net asset (asset-liability) as at date. The deductible item refers any asset that is difficult to be converted into cash immediately such as property, plant and equipment. The additional item includes any item recorded as liability without redemption obligation, internal reserves against future losses, items redeemable in kind and items that function as complemental capital.

Total amount of risk is quantification of all of possible losses from operation of business as a financial investor. Total amount of risk is comprised of the following ; market risks which quantify the possible losses due to fluctuation of stock price, interest rate, and exchange rate of the securities held by the investment firms ; credit risks which are the possible losses due to the breach of contract by the counterparties ; operation risks which are the possible losses due to accidents, errors, illegal conduct, and any other potential losses from deteriorated operation condition.

According to the Financial Investment Act, the regulation requires that net capital ratio must be maintained above 100% for the appropriation of the capital and it is required to improve the management if the financial investment firm does not meet the regulation for the net capital ratio.

39. Offsetting Financial Assets and Financial Liabilities

The Group enters into International Derivatives Swaps and Dealers Association (“ISDA”) master netting agreements or similar agreement with the Group’s derivative counterparties. The Group also enters into repurchase agreements and securities borrowing and lending agreements similar to the master netting agreement for derivatives. Master netting agreements provide protection in bankruptcy in certain circumstances and, where legally enforceable, enable receivables and payables with the same counterparty to be offset for accounting and risk management purposes.


	2025
(in thousands of Korean won)	Gross Amount		Offset amount		Net amounts presented in the statement of financial position		Amounts not offset				Net amount
(in thousands of Korean won)	Gross Amount		Offset amount				Recognized financial instruments		Cash collateral		Net amount
Financial assets
Derivatives assets, others ¹		1,808,461,566		—		1,808,461,566		1,427,458,830		177,659,247		203,343,489
Securities purchased under reverse repurchase agreements		1,832,100,000		—		1,832,100,000		1,832,100,000		—		—
Other receivables ⁴		4,899,327,214		4,315,518,767		583,808,447		—		—		583,808,447
Other receivables (Payment and settlement)		227,717,069		182,255,426		45,461,643		—		—		45,461,643

		8,767,605,849		4,497,774,193		4,269,831,656		3,259,558,830		177,659,247		832,613,579

Financial liabilities
Derivatives liabilities, others ¹		3,222,403,437		—		3,222,403,437		2,947,115,496		66,027,869		209,260,072
Securities sold under reverse resale agreements ²		10,719,460,118		—		10,719,460,118		10,719,460,118		—		—
Securities sold ³		2,910,712,724		—		2,910,712,724		2,910,712,724		—		—
Other payables ⁴		4,480,531,619		4,315,518,767		165,012,852		—		—		165,012,852
Other payables (Payment and settlement)		182,255,426		182,255,426		—		—		—		—

		21,515,363,324		4,497,774,193		17,017,589,131		16,577,288,338		66,027,869		374,272,924

¹	Both derivatives (trading) and derivatives (hedge) are included.

²	Securities sold under reverse resale agreements to the customers is included.

³	Securities sold is from securities borrowing and lending agreement.

⁴

In relation to customer brokerage transactions, the offset amount of receivables and liabilities arising from same-day transactions between the Korea Exchange and the Group is included. However, receivables of W4,360,987 million and payables of W4,183,015 million arising from same-day trans actions between customers and the Group are excluded.

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Notes to the Consolidated Financial Statements

December 31, 2025 and 2024


	2024
(in thousands of Korean won)	Gross Amount		Offset amount		Net amounts presented in the statement of financial position		Amounts not offset				Net amount
(in thousands of Korean won)	Gross Amount		Offset amount				Recognized financial instruments		Cash collateral		Net amount
Financial assets
Derivatives assets, others ¹		1,390,150,719		—		1,390,150,719		1,114,549,100		193,074,080		82,527,539
Securities purchased under reverse repurchase agreements		2,091,017,404		—		2,091,017,404		2,091,017,404		—		—
Other receivables ⁴		1,669,975,970		1,652,694,935		17,281,035		—		—		17,281,035
Other receivables (Payment and settlement)		136,966,708		123,672,076		13,294,632		—		—		13,294,632

		5,288,110,801		1,776,367,011		3,511,743,790		3,205,566,504		193,074,080		113,103,206

Financial liabilities
Derivatives liabilities, others ¹		2,902,445,355		—		2,902,445,355		2,676,007,223		76,853,200		149,584,932
Securities sold under reverse resale agreements ²		9,419,893,685		—		9,419,893,685		9,419,893,685		—		—
Securities sold ³		2,558,520,223		—		2,558,520,223		2,558,520,223		—		—
Other payables ⁴		1,740,843,763		1,652,694,935		88,148,828		—		—		88,148,828
Other payables (Payment and settlement)		123,672,076		123,672,076		—		—		—		—

		16,745,375,102		1,776,367,011		14,969,008,091		14,654,421,131		76,853,200		237,733,760

¹	Both derivatives (trading) and derivatives (hedge) are included.

²	Securities sold under reverse resale agreements to the customers is included.

³	Securities sold is from securities borrowing and lending agreement.

⁴

In relation to customer brokerage transactions, the offset amount of receivables and liabilities arising from same-day transactions between the Korea Exchange and the Group is included. However, receivables of W1,922,392 million and payables of W1,785,683 million arising from same-day trans actions between customers and the Group are excluded.

40. Lease

40.1 As a lessee

(a) The amounts recognized in the consolidated statement of financial position

The amounts related to lease recognized in the consolidated statement of financial position as at December 31, 2025 and 2024, are as follows;


(in thousands of Korean won)	2025		2024
Right-of-use assets ¹
Buildings		65,123,943		78,361,559
Vehicles		1,798,747		1,558,387
Others		3,557,333		1,651,891

		70,480,023		81,571,837

Lease liabilities		92,480,438		110,565,256

¹	The amount is included in property and equipment in the consolidated statement of financial position.

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Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

(b) The amounts recognized in the consolidated statement of profit or loss

The amounts related to lease recognized in the consolidated statement of profit or loss for the year ended December 31, 2025 and 2024, are as follows


(in thousands of Korean won)	2025		2024
Depreciation of the right-of-use assets
Buildings		27,491,861		25,889,842
Vehicles		1,390,454		1,326,898
Others		1,113,544		1,036,927

		29,995,859		28,253,667

Interest income from lease receivables (included in financial income)		594,103		779,142
Interest expense to lease liabilities (included in financial cost)		3,488,809		4,291,797
Lease payment for leases for which the underlying asset is of low value (included in administrative expenses, not-including lease for short-term period)		248,697		248,493
Variable lease payments which are not included in the measurement of lease liabilities (included in administrative expenses)		158,422		147,052

The total cash outflows for leases in 2025 and 2024 are W 39,895 million and W 37,734 million, respectively.

40.2 As a Lessor

(a) Financial Lease

As at December 31, 2025 and 2024, total investment on financial lease and present value of minimum lease payments and unrealized interest income of financial lease are as follows:


(in thousands of Korean won)	2025		2024
Total Investment on lease		16,555,000		23,129,979
Net Investment on lease		15,942,629		21,923,504
Present value of minimum lease payments		15,942,629		21,923,504
Unrealized interest income		612,371		1,206,474

(b) Operating Lease

As at December 31, 2025 and 2024, future minimum lease receipts expected under non-cancellable lease contracts are as follows:


(in thousands of Korean won)	2025		2024
Within 1 year		5,657,448		12,069,349
1 - 5 years		19,132,715		43,145,853
Over 5 years		5,633,095		2,871,151

		30,423,258		58,086,353

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Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

41. Contingent Liabilities and Commitments

As at December 31, 2025 and 2024, the Group is involved in pending lawsuits, as follows:


	2025				2024
(in thousands of Korean won)	Number of lawsuits		Amount		Number of lawsuits		Amount
Defendant		38		138,398,618		44		203,538,599
Plaintiff		13		226,629,322		16		236,163,306

The Group expects that these lawsuits do not have significant impact on the financial position.

The Group has entered into various agreements with financial institutions as at December 31, 2025 and 2024, as follows:


		Credit line
(in thousands of Korean won)	Financial institution	2025		2024
Overdraft (including daily overdraft)	Kookmin Bank and others		1,287,450,000		1,265,000,000
General loan	Kookmin Bank		40,000,000		40,000,000
Securities underwriting loan	KSFC		600,000,000		600,000,000
Working capital loan (general)	KSFC		475,000,000		475,000,000
Note trading at a discount (general)	KSFC		300,000,000		300,000,000
Note trading at a discount (trust)	KSFC		Limit of subscription deposits		Limit of subscription deposits
Bond dealer’s loan (general)	KSFC		300,000,000		300,000,000
Securities underwriting financing	KSFC		1,710,000,000		1,710,000,000
Committed line	Industrial and Commercial Bank of China, etc		480,634,000		452,746,000
Credit line	VIETCOMBANK and other		1,041,675,750		894,026,100

The guarantees and various commitment as at December 31, 2025 and 2024, are as follows:


(in thousands of Korean won)	2025		2024
Agreement to purchase commercial papers ¹		1,259,846,340		824,171,844
Loan agreements		151,500,000		54,000,000
Credit line agreements		724,667,552		903,109,980
LOC and Investment commitments		705,358,979		651,203,821

		2,841,372,871		2,432,485,645

¹	According to the above arrangement, the Group holds the asset-backed short-term bonds amounting to W 86,450 million and W 278,820 million as at December 31, 2025 and 2024, respectively.

The Group has been provided with W 18,557 million and W 14,622 million in guarantees related to provisional attachment and others by Seoul Guarantee Insurance as at December 31, 2025 and 2024, respectively.

The securities in custody as at December 31, 2025 and 2024, are as follows:


(in thousands of Korean won)	2025		2024		Valuation method
Trustor securities		300,600,043,794		240,661,735,301	Fair value
Saver securities		2,059,709,772		1,122,794,510	Fair value
Beneficiary securities		45,102,838,605		41,779,858,329	Standard selling price

		347,762,592,171		283,564,388,140

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Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

As at December 31, 2025, the main lawsuits against the group as a defendant are as follows:


(in thousands of Korean won)	No. of lawsuits	Amount	Contents	Situation of lawsuits
Return of purchase price, etc Unjust gains (Fund in Australia)	3	59,926,668	The Group, as a selling company of qualified investor private equity fund that aims to lend money to corporations (borrowers) investing in apartment rental business for disabled people in Australia, intermediated W 326.5 billion of trusts and funds to the individuals and institutional investors. However, the local borrower’s breach of the contract made the fund inoperable and the Group was sued for unjust gains/return of sales price, etc.	1st lawsuit: 3rd trial in progress (1st trial : February 7, 2023. Judgment ordering payment of W 29.8 billion in investment principal and delayed interest thereon 2nd trial : January 29, 2024. Judgment ordering payment of W 12 billion in investment principal and delayed interest thereon with different conclusion) 2nd lawsuit: 2nd trial in progress (1st trial : February 14, 2024. Judgment ordering payment of W 12.2 billion in investment principal and delayed interest thereon) 3rd lawsuit: 3rd trial in progress (1st trial : October 26, 2023. Judgment ordering payment of W 8.46 billion in remaining principal and delayed interest on W 8.29 billion in principal 2nd: January 16, 2025. Judgment ordering the return of W 4.4 billion, a portion of 8.07 billion paid in there first trial)
Compensation for damages (Winners Delegated Customer)	1	4,469,546	8 clients who had signed an investment agency contract with Winners Asset Management Co.,LTD. and opened accounts with the Group to trade Nikkei 225 options claimed damages from the company, claiming that the short sales that Group conducted as a result of increased intraday risk due to the sharp decline in the Nikkei 225 index caused by COVID-19 in August 2020 was illegal.	2 plaintiffs filed an appeal (1st trial : February 2, 2023. Judgment dismissing all plaintiffs’ claims for damages 2nd trial : October 30, 2025. Judgment dismissing all plaintiffs’ appeal against the first trial)

Damages and Unjust Gains (Winners Fund Investors)	4	7,202,350	Investors who invested in funds managed by Winners Asset Management Co.,LTD.filed lawsuits against the Group, which was an investment broker, claimed compensation for damages or return of unjust gains due to contract cancellation (60 plaintiffs in total)	1 cases: Appeal filed (1st trial : ① September 26, 2024. the Group wins in full ② September 18, 2025. the Group wins in full) 2 cases: 2nd trial in progress (1st trial : ① August 22, 2024. the Group wins in full ② November 28, 2025. the Group wins in full) 1 cases: 1st trial in progress

Damages and Unjust Gains (TA_DLS Trust)	7	9,082,031	Investors who invested in KB able DLS Trust (a specific money trust that includes derivative linked securities linked to TA-OPAL Fund, which TransAsia Management invests in trade finance loan receivables) argued that the Group’s sales staff misleaded that the principal was guaranteed by an insurance company’s guarantee, and claimed the return of unjust gains by the cancellation of the contract due to the error.	2 cases: Appeal filed (1st trial : ① July 23, 2025. the plaintiff win in partially. ② October 23, 2025. . the plaintiff win in partially . 5 cases: 1st trial in progress

136

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

Unjust Gains

(Heritage Banzaran DLS)

38,768,140

The Group provided false information about the business capabilities of the operator (GPG), etc., thereby causing the plaintiff to misunderstand the key investment conditions of the DLS in this case. Therefore, the plaintiff requested to cancel the acquisition contract for the DLS in this case due to the mistake and claimed the return of the acquisition price of the DLS in this case and the delay damages as unjust gains.

3 cases: 1st trial In progress

The Fair Trade Commission is currently reviewing whether the Group has engaged in unfair joint activities with other banks and securities firms, and the results of the deliberation and decision are uncertain at this time.

During the year ended December 31, 2025, the Group underwent a regular tax audit by the Seoul Regional Tax Office for the fiscal years from 2020 to 2024, and paid W 19,398 million in corporate taxes and other taxes (including local income tax) in December 2025 and January 2026. Accordingly, the Group filed an appeal for W 15,249 million in February 2026, considering the items indicated in the tax notice. As at December 31, 2025, the Group did not recognize any tax liabilities for amounts it determined were likely to be refunded through an appeal. However, the final tax liability may change depending on the outcome of the appeal.

137

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

42. Related Party Transactions

KB Financial Group Inc. owns 100% of ordinary shares of the KB Securities Co., Ltd. as at December 31, 2025 and 2024.

Significant balances and transactions, excluding loan and borrowing transactions, with related parties as at December 31, 2025 and 2024, are as follows:

(a) Receivables and payables


(in thousands of Korean won)	2025				2024
	Receivables		Payables		Receivables		Payables
The Parent Company
KB Financial Group Inc.		177,981,457		129,572,183		—		100,482,725
Others
Kookmin Bank		57,592,045		118,712,300		148,169,617		92,559,065
KB Asset Management Co., Ltd.		—		29,854		—		34,401
KB Real Estate Trust Co., Ltd.		—		355		—		417
KB Investment Co., Ltd.		751,581		131		848,476		165
KB Data System Co., Ltd.		5,356,594		356,049		925,927		331,681
KB Kookmin Card Co., Ltd.		14,395		9,066,102		455		8,427,724
KB Savings Bank Co., Ltd.		—		574		—		657
KB Capital Co., Ltd.		1,035,197		1,065,333		1,416,693		2,850,380
KB Insurance Co., Ltd		151,341,852		22,345,124		6,846,890		92,036,600
KB Life Insurance Co., Ltd.		44,486,042		18,286,691		1,062,706		4,440,280
KB Wisestar Private Real Estate Fund Investment Trust No. 1		—		—		5,274		—
Other funds		4,141,026		1,743,740		2,413,016		6,875,206

(b) Revenue and expenses


	2025				2024
(in thousands of Korean won)	Revenue		Expenses		Revenue		Expenses
Associates
KBTS Technology Venture Private Equity Fund		170,353		—		174,883		—
KB-SJ Tourism Venture Fund		788,468		—		272,001		—
KB SPROTT Renewable Private Equity Fund I		77,970		—		255,062		—
KB-Stonebridge Secondary Private Equity Fund		364,486		—		401,890		—
KB-UTC Inno-Tech Venture Fund		146,853		—		230,269		—
KB-NAU Special Situation Corporate Restructuring Private Equity Fund		800,322		—		619,004		—
KB Material and Parts No. 1 PEF ¹		—		—		175,287		—
KB Special Purpose Acquisition Company No.21 ¹		—		—		135,842		—
KB-KTB Technology Venture Fund		398,659		—		341,826		—
KB-GeneN Medical Venture Fund 1		88,800		—		88,800		—
KB-BridgePole Venture Investment Fund ¹		—		—		100,973		—
KB-Kyobo New Mobility Power Fund ¹		—		—		75,523		—
KB-FT 1st Green Growth Investment Fund		135,415		—		135,639		—
KB-NP Green ESG New Technology Venture Capital Fund		1,095,469		—		1,133,636		—
KB Special Purpose Acquisition Company No.25		65,452		—		—		175,265

138

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024


	2025				2024
(in thousands of Korean won)	Revenue		Expenses		Revenue		Expenses
KB Special Purpose Acquisition Company No.26 ¹		—		—		—		53,795
KB-SUSUNG 1st Investment Fund		142,365		—		192,368		—
KB Special Purpose Acquisition Company No.27		405,334		—		—		176,877
KB-BridgePole Venture Investment Fund #2		105,000		—		105,000		—
U-KB Credit No.1 Private Equity		967,500		—		970,151		—
KB Special Purpose Acquisition Company No.28 ¹		—		—		1,292,589		—
KB Special Purpose Acquisition Company No.29		143,758		—		1,735,480		—
AKK Robotech Valueup New Technology Investment Fund ¹		235,495		—		101,116		—
KB-SOLIDUS Healthcare Investment Fund		860,181		—		768,198		—
KB-CJ Venture Fund 1st		150,000		—		79,918		—
KB-SUSUNG 2nd Investment Fund		154,772		—		77,518		—
KB Global Commerce Private Equity Investment Fund ¹		—		—		—		—
KB KONEX Market Vitalization Fund ¹		—		—		—		—
KB Star REIT		9,442,306		—		—		—
KB Special Purpose Acquisition Company No.30		57,619		—		1,620,135		—
KB Special Purpose Acquisition Company No.31		177,402		—		2,111,082		—
KB-Cyrus Tourism Venture Fund		337,500		—		63,627		—
KB-IMM Newstar Real Estate Private Fund 1		2,277,815		—		—		—
KB Special Purpose Acquisition Company No.33		2,214,139		—		—		—
KBLB Middle Market Enterprises Innovation Private Equity Fund		1,199,742		—		—		—
Semicolon Susong Commissioned Real Estate Investment Trust		5,650,210		—		—		—
KB-Novus Genesis Private Equity Fund		103,905		—		—		—
AIM-KB-DOUBLE Connected Future Investment Fund		30,378		—		—		—
KB-SP Private Equity Fund IV ¹		62,547		—		—		—
E&I Holdings Co., Ltd ¹		3,446,057		—		—		—
IMM global Secondary 1-1 Equity Private Fund		3,511		—		—		—
KB-IMM Newstar Real Estate Private Fund 2		138,002		—		—		—
The Parent Company
KB Financial Group Inc.		1,421,759		65,443		778,875		99,196
Others
Kookmin Bank		75,750,216		222,486,519		176,460,934		152,374,594
KB Asset Management Co., Ltd.		903		911,493		782		839,780
KB Real Estate Trust Co., Ltd.		622		7,014		215,636		937
KB Investment Co., Ltd.		1,570,303		5		1,666,529		6
KB Data System Co., Ltd.		1,021		2,722,953		8,483		5,749,905
KB Kookmin Card Co., Ltd.		111,825		1,017,147		57,063		837,257
KB Savings Bank Co., Ltd.		996		69		23		23
KB Capital Co., Ltd.		811,018		77,590		492,222		41,598
KB Insurance Co., Ltd.		215,567,089		—		6,994,519		56,730,129
KB Life Insurance Co., Ltd.		44,935,958		2,604,916		1,112,355		469,723
KB Wisestar Private Real Estate Fund Investment Trust No. 1		9,549		—		110,292		—

139

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024


	2025				2024
(in thousands of Korean won)	Revenue		Expenses		Revenue		Expenses
Other funds		17,455,819		168,140		23,588,133		—
Retirement pension		1,222,235		—		1,230,487		—
The Group
Employees		773,600		—		379,157		—

¹	These companies are excluded from related parties during the year ended December 31, 2025 or 2024. The transaction amounts are up to the date of the exclusion.

(c) Significant loan and borrowing transactions with related parties for the years ended December 31, 2025 and 2024 are as follows:


	2025
(in thousands of Korean won)	Accounts	Beginning balance		Increase		Decrease			Other			Ending balance
Associates
KB Special Purpose Acquisition Company No.21 ¹	Hybrid bond with securities- like features		3,122,444		—		(3,122,444	)		—			—
KB Special Purpose Acquisition Company No.25	Hybrid bond with securities- like features		1,849,919		—		—			65,453			1,915,372
KB Special Purpose Acquisition Company No.26 ¹	Hybrid bond with securities- like features		2,150,426		—		—			(2,150,426	)		—
KB Special Purpose Acquisition Company No.27	Hybrid bond with securities- like features		5,876,876		—		—			405,334			6,282,210
KB Special Purpose Acquisition Company No.28 ¹	Hybrid bond with securities- like features		2,112,589		—		—			(2,112,589	)		—
KB Special Purpose Acquisition Company No.29	Hybrid bond with securities- like features		3,015,480		—		—			143,758			3,159,238
KB Special Purpose Acquisition Company No.30	Hybrid bond with securities- like features		2,835,135		—		—			57,619			2,892,754
KB Special Purpose Acquisition Company No.31	Hybrid bond with securities- like features		4,301,082		—		—			177,402			4,478,484
KB Special Purpose Acquisition Company No.33	Hybrid bond with securities- like features		—		2,090,000		—			2,214,139			4,304,139
Others
Kookmin Bank	Deposits ²		499,683,258		—		—			(123,829,944	)		375,853,314
	Borrowings		121,654,100		1,028,552,673		(852,271,239	)		—			297,935,534
PT Bank KB Bukopin Tbk	Borrowings		—		8,560,000		—			—			8,560,000
KB Kookmin Card Co., Ltd.	Debt Securities		—		10,001,122		(10,001,122	)		—			—

140

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024


KB Capital Co., Ltd.	Debt Securities	—	10,002,628	(10,002,628	)	—	—
Executives	Deposit Liabilities	373,997	510,499	(217,242	)	—	667,254
The Group
Employees	Loans to employees	23,488,800	20,235,774	(6,466,148	)	—	37,258,426

¹	These companies are not related parties of the Group as at December 31, 2025.

²	Transactions such as settlement payments for business reasons and deposits that can be deposited and withdrawn at any time between related parties are disclosed in net amounts.


	2024
(in thousands of Korean won)	Accounts	Beginning balance		Increase		Decrease			Other			Ending balance
Associates
KB Special Purpose Acquisition Company No.21	Hybrid bond with securities- like features		2,986,602		—		—			135,842			3,122,444
KB Special Purpose Acquisition Company No.22 ¹	Hybrid bond with securities- like features		2,984,646		—		—			(2,984,646	)		—
KB Special Purpose Acquisition Company No.23 ¹	Hybrid bond with securities- like features		1,488,699		—		—			(1,488,699	)		—
KB Special Purpose Acquisition Company No.25	Hybrid bond with securities- like features		2,025,184		—		—			(175,265	)		1,849,919
KB Special Purpose Acquisition Company No.26	Hybrid bond with securities-like features		2,204,221		—		—			(53,795	)		2,150,426
KB Special Purpose Acquisition Company No.27	Hybrid bond with securities- like features		6,053,752		—		—			(176,876	)		5,876,876
KB Special Purpose Acquisition Company No.28	Hybrid bond with securities- like features		—		995,000		—			1,117,589			2,112,589
KB Special Purpose Acquisition Company No.29	Hybrid bond with securities- like features		—		1,490,000		—			1,525,480			3,015,480
KB Special Purpose Acquisition Company No.30	Hybrid bond with securities- like features		—		1,390,000		—			1,445,135			2,835,135
KB Special Purpose Acquisition Company No.31	Hybrid bond with securities- like features		—		2,190,000		—			2,111,082			4,301,082
Others
Kookmin Bank	Deposits ²		383,027,563		—		—			116,655,695			499,683,258
	Borrowings		265,927,798		811,389,573		(955,663,271	)		—			121,654,100
KB Kookmin Card Co., Ltd.	Debt Securities		30,127,334		—		(30,127,334	)		—			—
KB Savings Bank Co., Ltd.	Borrowings		3,000,000		—		(3,000,000	)		—			—

141

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024


KB Insurance Co., Ltd	Borrowings	70,500,000	—	(70,500,000	)	—	—
KB Capital Co., Ltd.	Borrowings	43,312,000	—	(43,312,000	)	—	—
KB STAR CLASBY 1 st Inc.	Borrowings	72,000,000	—	(72,000,000	)	—	—
Executives	Deposit Liabilities	635,217	283,283	(544,503	)	—	373,997
The Group
Employees	Loans to employees	12,587,095	16,252,859	(5,351,154	)	—	23,488,800

¹	These companies are not related parties of the Group as at December 31, 2024.

²	Transactions such as settlement payments for business reasons and deposits that can be deposited and withdrawn at any time between related parties are disclosed in net amounts.

In addition to the above, the balance of hybrid securities held by KB Financial Group Inc., issued by the Group as at December 31, 2025, is W 530,000 million (2024 : W 530,000 million), and the related dividend payment for the year ended December 31, 2025 is W 26,600 million (2024 : W 31,913 million).

And the dividend paid by the Group to KB Financial Group Inc., the parent company, through disposal of retained earnings in 2025 during the year ended December 31, 2025 is W 580,000 million (2024 : W 150,000 million).

Meanwhile, the above financial transactions do not include details of increases or decreases in deposits that occur for business reasons between related parties.

(d) Other transactions with related parties for the years ended December 31, 2025 and 2024, are as follows:


(In thousands of Korean won)	2025
	Contribution		Collection and others
Associates
KB Special Purpose Acquisition Company No.21 ¹		—		10,000
KB Special Purpose Acquisition Company No.26 ¹		—		5,000
KB Special Purpose Acquisition Company No.28 ¹		—		5,000
KB Special Purpose Acquisition Company No.32		10,000		—
KB New Paradigm Agriculture Venture Fund		—		375,000
KB KONEX Market Vitalization Fund ¹		—		540,000
KB-KDBC New Technology Business Investment Fund		—		1,500,000
KB-SJ Tourism Venture Fund		—		190,000
KB-Stonebridge Secondary Private Equity Fund		—		1,248,439
KB-SP Private Equity Fund IV ¹		—		2,494,808
KB-NAU Special Situation Corporate Restructuring Private Equity Fund		1,800,000		1,700,815
KB Digital Platform Fund		10,000,000		—
KB-SOLIDUS Healthcare Investment Fund		1,316,667		—
JS Private Equity Fund III		—		749,248
THE CHAEUL FUND NO.1 ¹		—		1,000,000
POSITVE Sobujang Venture Fund #1 ¹		—		879,121
KB-NP Green ESG New Technology Venture Capital Fund		3,480,000		1,136,153
Hisstory 2022 Fintech Fund ¹		—		2,000,000
KB Bio Private Equity Investment Fund IV ¹		—		7,500,000
KB-SUSUNG 1st Investment Fund		—		946,000
Shinhan-Eco Venture Fund 2nd		25,000		190,000
2023 JB Newtech No.2 Fund ¹		—		1,405,557
U-KB Credit No.1 Private Equity		11,953,489		—
AKK Robotech Valueup New Technology Investment Fund ¹		—		1,000,000
IMM global Secondary 1-1 Equity Private Fund		756,186		162,251

142

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024


NOVORSEC-SJG Consumer Secondary Fund ¹	—	1,700,000
KBSBI Global High-tech Strategic Private Equity Investment Limited Partnership	10,215,000	—
KB-Cyrus Tourism Venture Fund	1,000,000	—
NICE DATA INTELLIGENCE VENTURE FUND ¹	—	1,000,000
Pectus Hanwha Fund No.2 ¹	—	2,000,000
KB-IMM Newstar Real Estate Private Fund 1	19,386,033	—
KBLB Middle Market Enterprises Innovation Private Equity Fund	4,284,000	—
YG AI Industrial Automation Solutions FUND	2,000,000	—
KB-Novus Genesis Private Equity Fund	2,300,000	—
KB Special Purpose Acquisition Company No.33	160,000	—
E&I Holdings Co., Ltd ¹	27,300,000	27,300,000
Korea Environment Technology Co., LTD ¹	—	107,427,843
Semicolon Susong Commissioned Real Estate Investment Trust	77,000,000	857,210
Others
KB BMO Senior Loan Private Special Asset Fund 2	—	6,588,099
KB Overseas Investment Private Real Estate Investment Trust No. 22	4,016,340	—
KB Wisestar Private Real Estate Fund Investment Trust No. 1	—	2,414,882
KB North America Jefferies Private Special Asset Investment Trust No.1	4,683,542	1,346,657
KB North America Jefferies Private Special Asset Investment Trust No.2	262,750	89,659
KB Corporation Dollar MMF(USD)	28,989,000	43,844,420
Mirae Asset ESG Infrastructure General Investors Private Equity Fund No. 1	22,857	10,442
KB BXC GREEN CREDIT Infra General Private Special Asset Fund 2	44,338	28,032
KB Apax Global Buyout Fund	1,912,740	—
KB Global Infra Private Special Asset Fund No.6	—	130,507
KB Overseas Investment Private Real Estate Investment Trust No. 35	50,606	—
KB Global Senior Loan Private Fund No.1(USD)	18,489,479	5,808,597
KB Wisestar General Real Estate Fund 24	14,700,000	14,700,000
KB Global Platform Fund	—	2,880,000
KB New Deal Innovation Fund	—	1,000,000
Paramark KB Fund I	1,830,000	411,000
KB Secondary Plus Fund	—	1,676,310
KB Prime Digital Platform Fund	1,125,000	—
KB Scale-up Fund No.2	3,500,000	—
KB Global Platform Fund No.2	2,400,000	—
Startup Korea KB Secondary Fund	1,500,000	1,961
Timefolio The Time-Frontier Star Specialized Private Investment Trust	10,097,349	490,175
KB Wisestar General Real Estate Fund 21	8,899,000	230,400
KB ValueRise Blind Private Real Estate Fund No.1	10,684,210	—
PineStreet Global Corporate FoF 28-2(AOP II)	141,706	1,265
KB BX Europe Infra Private SpecialAsset Fund 1(EUR)	4,177,909	—
KB RISE Short-Term MSB ETF	71,909,225	71,909,111
KB Wisestar General Real Estate Fund 28	20,500,000	—

¹	These companies are not related parties of the Group as at December 31, 2025.

143

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024


Associates
KB Special Purpose Acquisition Company No.22 ¹	—	10,000
KB Special Purpose Acquisition Company No.28	5,000	—
KB Special Purpose Acquisition Company No.29	10,000	—
KB Special Purpose Acquisition Company No.30	10,000	—
KB Special Purpose Acquisition Company No.31	10,000	—
KB New Paradigm Agriculture Venture Fund	—	825,000
KB KONEX Market Vitalization Fund	—	75,000
KB-KDBC New Technology Business Investment Fund	—	300,000
KBTS Technology Venture Private Equity Fund	—	704,000
KB-SJ Tourism Venture Fund	—	4,030,000
KB-Stonebridge Secondary Private Equity Fund	—	190,539
KB-UTC Inno-Tech Venture Fund	—	112,500
KB-NAU Special Situation Corporate Restructuring Private Equity Fund	4,482,000	3,889,195
KB Material and Parts No. 1 PEF ¹	—	3,400,000
KB Global Commerce Private Equity Investment Fund ¹	—	7,000,000
KB-KTB Technology Venture Fund	2,000,000	—
KB Digital Platform Fund	10,000,000	—
KB-SOLIDUS Healthcare Investment Fund	1,300,000	—
KB-BridgePole Venture Investment Fund ¹	—	136,000
KB-Kyobo New Mobility Power Fund ¹	—	3,000,000
JS Private Equity Fund III	—	754,979
POSITVE Sobujang Venture Fund #1	—	1,120,879
KB-NP Green ESG New Technology Venture Capital Fund	7,920,000	—
LAKEWOOD-AVES Fund No.1 ¹	—	2,000,000
KB-SUSUNG 1st Investment Fund	—	924,000
Friend 55 New Technology Business Investment Fund ¹	—	1,200,000
Bitgoeul Cheomdan Green 1st Co., Ltd.	152,000	—
DSIP-Pharos Bioenergy Fund ¹	—	4,000,000
Shinhan-Eco Venture Fund 2^nd	225,000	—
2023 JB Newtech No.2 Fund	—	394,443
U-KB Credit No.1 Private Equity	279,070	—
Timefolio Athleisure Investment Fund	4,000,000	—
COMPA Global Scale-Up Fund No.3	1,000,000	—
AKK Robotech Valueup New Technology Investment Fund	1,000,000	—
YG MCE PROJECT No.1 Fund	1,500,000	—
HI YG Win-win Fund No.2	2,000,000	—
KB-CJ Venture Fund 1st	1,800,000	—
Elohim-Bilanx aerospace No.1 Fund	2,000,000	—
KB-SUSUNG 2nd Investment Fund	2,000,000	—
IMM global Secondary 1-1 Equity Private Fund	2,819,038	—
LIB Material Investment Fund	4,098,144	—
NOVORSEC-SJG Consumer Secondary Fund	1,700,000	—
KBSBI Global High-tech Strategic Private Equity Investment Limited Partnership	5,059,098	—
KB-Cyrus Tourism Venture Fund	1,000,000	—
IBKS Design Fund	2,000,000	—
NICE DATA INTELLIGENCE VENTURE FUND	1,000,000	—
Pectus Hanwha Fund No.2	2,000,000	—
KB-IMM Newstar Real Estate Private Fund 1	20,897,275	—
G Payment Joint Stock Company	—	1,504,288
Korea Environment Technology Co., LTD	107,427,843	—
Others
KB BMO Senior Loan Private Special Asset Fund 2	—	5,119,216

144

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024


KB Overseas Investment Private Real Estate Investment Trust No. 22	2,728,938	853,778
KB Global Platform Fund	—	2,540,000
Paramark KB Fund I	2,710,000	—
KB Prime Digital Platform Fund	900,000	—
KB Scale-up Fund No.2	1,500,000	—
KB Global Platform Fund No.2	3,600,000	—
KB Overseas Investment Private Real Estate Investment Trust No. 35	50,535	—
KB North America Jefferies Private Special Asset Investment Trust No.2	38,129	—
KB KBSTAR Money Market Active	10,090,203	81,692,923
KB KBSTAR US Short-Term IG Corporate Bond ETF	—	30,915,000
KB Wise star General Real Estate Fund 22	—	96,145,931
Mirae Asset ESG Infrastructure General Investors Private Equity Fund No. 1	372,857	—
KB BXC GREEN CREDIT Infra General Private Special Asset Fund 2	64,458	—
KB Apax Global Buyout Fund	2,669,708	—
KB Global Infra Private Special Asset Fund No.6	2,006,602	—
KB Global Senior Loan Private Fund No.1(USD)	5,996,748	—
Startup Korea KB Secondary Fund	1,500,000	—
REKSA DANA VALBURY STABLE GROWTH FUND	—	126,277

¹	These companies are not related parties of the Group as at December 31, 2024.

(e) Details of guarantees and assets pledged as collateral to related parties as at December 31, 2025 and 2024 are as follows:

- Guarantees

Limit amount

(in thousands of Korean won)

Details

2025

2024

KB Star Galaxy Towers REIT

Funding
replenishment
agreement B

—

40,000,000

- Assets pledged as collateral


(in thousands of Korean won)		2025				2024
	Details of assets pledged	Carrying amount		Collateralized amount		Carrying amount		Collateralized amount
Other related parties
Kookmin Bank	Time deposits and others		173,000,000		167,000,000		173,000,000		167,000,000
	Bonds denominated in Korean won		100,962,906		105,126,000		19,197,211		20,000,000
	Stocks denominated in Korean won		105,943,750		119,887,500		—		—
	Investment Properties		25,022,287		25,022,287		32,449,970		22,992,136
KB Insurance Co., Ltd	Bonds denominated in Korean won		—		—		92,936,186		91,962,000

145

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

- Assets received as collateral


(in thousands of Korean won)	Details of assets pledged	2025		2024
		Collateralized amount		Collateralized amount
Other related parties
Kookmin Bank	Bonds denominated in Korean won		585,760,000		108,891,000
KB Insurance Co., Ltd.	Bonds denominated in Korean won		277,790,000		10,000,000
KB Life Insurance Co., Ltd.	Bonds denominated in Korean won		143,738,832		—

As at December 31, 2025, the Group has W 140,000 million (2024 : W 144,362 million) of credit line such as loan agreement. . And the Group has entered into a CLS (Foreign Exchange Simultaneous Settlement) third-party service agreement with Kookmin Bank Co., Ltd., and according to the related agreement, it can receive intraday liquidity of USD 500 million on the condition of repayment on the settlement date.

(f) Details of unused loan commitments provided to the related parties as at December 31, 2025 and 2024, are as follows:


(In thousands of Korean won)	Details	Amounts
		2025		2024
KB BMO Senior Loan Private Special Asset Fund 2	Purchase agreements of securities		22,076		22,616
KB Global Infra Private Special Asset Fund No.6	Purchase agreements of securities		2,993,171		2,993,171
KB-NAU Special Situation Corporate Restructuring Private Equity Fund	Purchase agreements of securities		462,000		2,262,000
Paramark KB Fund I	Purchase agreements of securities		290,000		2,120,000
KB-SOLIDUS Healthcare Investment Fund 1	Purchase agreements of securities		—		1,316,667
KB Digital Platform Fund	Purchase agreements of securities		12,000,000		22,000,000
KB-NP Green ESG New Technology Venture Capital Fund	Purchase agreements of securities		420,000		3,900,000
KB Prime Digital Platform Fund	Purchase agreements of securities		—		1,125,000
KB Scale-up Fund No.2	Purchase agreements of securities		2,000,000		5,500,000
KB Overseas Investment Private Real Estate Investment Trust No. 22	Purchase agreements of securities		3,530,738		7,709,267
KB Global Platform Fund No.2	Purchase agreements of securities		5,400,000		7,800,000
KB North America Jefferies Private Special Asset Investment Trust No.1	Purchase agreements of securities		1,570,513		6,416,289
KB North America Jefferies Private Special Asset Investment Trust No.2	Purchase agreements of securities		82,659		337,699
Mirae Asset ESG Infrastructure General Investors Private Equity Fund No. 1	Purchase agreements of securities		604,238		727,095
U-KB Credit No.1 Private Equity	Purchase agreements of securities		12,953,488		24,906,977
KB Wisestar Private Real Estate Fund Investment Trust No. 1	Purchase agreements of securities		—		19,000

146

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Notes to the Consolidated Financial Statements

December 31, 2025 and 2024


Shinhan-Eco Venture Fund 2nd	Purchase agreements of securities	425,000	450,000
KB Apax Global Buyout Fund	Purchase agreements of securities	12,158,512	13,069,562
KB-CJ Venture Fund 1st	Purchase agreements of securities	4,200,000	4,200,000
KB-Cyrus Tourism Venture Fund	Purchase agreements of securities	3,000,000	4,000,000
KB Global Senior Loan Private Fund No.1(USD)	Purchase agreements of securities	18,420,801	38,119,931
KB Overseas Investment Private Real Estate Investment Trust No. 35	Purchase agreements of securities	184,387	241,039
KB Development Blind General Private Real Estate Investment Trust No.2	Purchase agreements of securities	—	360,000
Startup Korea KB Secondary Fund	Purchase agreements of securities	7,000,000	8,500,000
IMM global Secondary 1-1 Equity Private Fund	Purchase agreements of securities	10,847,438	11,814,216
PineStreet Global Corporate FoF 28-2	Purchase agreements of securities	143,227	200,526
KBSBI Global High-tech Strategic Private Equity Investment Limited Partnership	Purchase agreements of securities	14,725,902	24,940,902
KB-IMM Newstar Real Estate Private Fund 1	Purchase agreements of securities	8,716,692	28,102,725
KBLB Middle Market Enterprises Innovation Private Equity Fund	Purchase agreements of securities	15,716,000	—
KB ValueRise Blind Private Real Estate Fund No.1	Purchase agreements of securities	1,815,790	—
KB BX Europe Infra Private SpecialAsset Fund 1(EUR)	Purchase agreements of securities	4,136,158	—
KB-IMM Newstar Real Estate Private Fund 2	Purchase agreements of securities	25,490,182	—
KB Wisestar General Real Estate Fund 21	Purchase agreements of securities	11,101,000	—
KB-ANDA Deep Tech Venture Fund	Purchase agreements of securities	6,250,500	—

The Group received credit card commitment amounting to W 30,000 million(W 23,000 million as at December 31, 2024) from KB Kookmin Card Co., Ltd. as at December 31, 2025.

(g) Debt instruments purchased or sold via the Group by the related party for the years ended December 31, 2025 and 2024, are as follows.


	2025
(in thousands of Korean won)	Sale		Purchase ¹
KB Financial Group Inc.		—		210,000,000
Kookmin Bank		10,734,429,024		10,324,889,295
KB Insurance Co., Ltd		1,405,912,442		189,055,117
KB Life Insurance Co., Ltd		832,968,613		335,653,115
KB Capital Co., Ltd.		—		260,320,000
KB Kookmin Card Co., Ltd.		—		90,000,000

¹	Debt instruments issued by the related parties and purchased by the Group are included.

147

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Notes to the Consolidated Financial Statements

December 31, 2025 and 2024


	2024
(in thousands of Korean won)	Sale		Purchase ¹
KB Financial Group Inc.		—		20,000,000
Kookmin Bank		8,981,924,390		8,213,942,162
KB Insurance Co., Ltd.		969,601,763		395,133,652
KB Life Insurance Co., Ltd.		538,960,937		431,117,063
KB Capital Co., Ltd.		—		220,000,000
KB Kookmin Card Co., Ltd.		—		130,000,000

¹	Debt instruments issued by the related parties and purchased by the Group are included.

(h) The key management includes directors, members of BOD, CFO, person in charge for internal audit and their compensation for the years ended December 31, 2025 and 2024, are as follows.


(in thousands of Korean won)	2025		2024
Salaries		26,372,671		17,868,966
Post-employment benefits		857,002		845,549
Share-based payment		29,144,965		24,598,629

		56,374,638		43,313,144

43. Supplemental Cash Flow Information

Adjustments for non-cash items of cash flows from operating activities for the years ended December 31, 2025 and 2024, are as follows.


(in thousands of Korean won)	2025			2024
Interest income		(1,767,447,056	)		(1,786,484,002	)
Interest expenses		1,148,067,884			1,179,191,195
Dividend income and distribution income		(116,166,843	)		(91,056,529	)
Tax expenses		224,506,293			158,272,193
Gains on valuation of financial assets (liabilities) required to be mandatorily measured at FVTPL		(1,846,047,283	)		(593,355,209	)
Losses on valuation of financial assets (liabilities) required to be mandatorily measured at FVTPL		757,388,551			523,121,917
Gains on valuation of financial assets (liabilities) designated at FVTPL		(49,800,640	)		(138,878,158	)
Losses on valuation of financial assets (liabilities) designated at FVTPL		236,511,091			187,567,451
Gains on valuation of derivative financial assets (liabilities)		(2,201,611,473	)		(1,224,670,567	)
Losses on valuation of derivative financial assets (liabilities)		2,482,180,251			1,422,207,317
Gains or losses on disposal of financial assets at FVOCI		(24,498,535	)		(12,705,258	)
Provision for allowances for loan losses		88,926,716			54,050,191
Depreciation		59,613,156			56,885,629
Amortization		58,477,146			54,692,261
Foreign currency translations		(70,588,288	)		(137,779,851	)
Others		92,567,066			113,535,980

		(927,921,964	)		(235,405,440	)

148

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Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

Changes in operating assets and liabilities of cash flows for the years ended December 31, 2025 and 2024, are as follows.


(in thousands of Korean won)	2025			2024
Deposits in financial institutions		(796,908,552	)		(41,876,130	)
Financial assets required to be mandatorily measured at FVTPL		(4,253,091,457	)		(1,121,560,056	)
Derivative financial instruments		(342,484,895	)		(329,637,150	)
Loans measured at amortised cost		(173,999,549	)		(142,436,152	)
Other assets		(3,525,638,264	)		1,197,627,263
Deposit liabilities		4,312,800,785			413,778,005
Financial liabilities required to be mandatorily measured at FVTPL		11,909,296			(185,579,133	)
Financial liabilities designated at FVTPL		(205,049,772	)		(21,982,796	)
Defined benefit obligation		(24,515,202	)		(22,923,860	)
Securities sold under repurchase agreements		791,868,208			325,265,250
Other liabilities		3,693,643,525			(1,552,482,049	)

		(511,465,877	)		(1,481,806,808	)

Changes in liabilities of cash flows from financing activities for the years ended December 31, 2025 and 2024, are as follows.


	2025
(in thousands of Korean won)	Borrowings			Debentures			Guarantee deposits			Lease liabilities			Others			Total
Beginning balance (net)		24,083,885,354			3,457,691,424			15,879,110			110,565,256			55,089,625			27,723,110,769
Cash Transactions		2,861,360,138			1,168,100,000			492,762			(38,314,233	)		16,665,222			4,008,303,889
Exchanges in foreign currency		(18,155,048	)		(10,530,000	)		(7,185	)		175,035			—			(28,517,198	)
Changes in consolidation scope		(411,417,840	)		—			(6,031,442	)		—			(21,238	)		(417,470,520	)
Non-cash transactions		—			(1,457,133	)		221,855			20,054,380			(24,654,948	)		(5,835,846	)

Ending balance(net)		26,515,672,604			4,613,804,291			10,555,100			92,480,438			47,078,661			31,279,591,094


	2024
(in thousands of Korean won)	Borrowings			Debentures			Guarantee deposits			Lease liabilities			Others			Total
Beginning balance (net)		22,505,037,220			2,556,301,933			16,255,758			108,095,746			92,117,465			25,277,808,122
Cash Transactions		1,685,010,913			848,655,508			(565,526	)		(46,492,571	)		(32,697,143	)		2,453,911,181
Exchanges in foreign currency		28,537,841			54,036,492			26,348			(485,759	)		—			82,114,922
Changes in consolidation scope		(134,700,620	)		—			—			—			(57,391,789	)		(192,092,409	)
Non-cash transactions		—			(1,302,509	)		162,530			49,447,840			53,061,092			101,368,953

Ending balance(net)		24,083,885,354			3,457,691,424			15,879,110			110,565,256			55,089,625			27,723,110,769

149

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Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

44. Non-cash Transactions

Significant non-cash transactions from investing activities and financing activities which are not included in consolidated statements of cash flows for the years ended December 31, 2025 and 2024, are as follows:


(in thousands of Korean won)	2025		2024
Increase due to gains on valuation of financial assets at FVOCI		43,057,273		7,160,042

45. Interests in Unconsolidated Structured Entities

Information about interests in unconsolidated structured entities, which the Group does not have control over, including the nature, purpose and activities of the structured entity and how the structured entity is financed, is as follows:


Nature	Purpose	Activities	Method of financing
Asset-backed securitization	• Early cash generation through transfer of securitization assets • Fees earned as services to SPC, such as providing lines of credit and ABCP purchase commitments	• Fulfillment of Asset-backed securitization plan • Purchase and transfer of securitization assets • Issuance and repayment of ABS and ABCP	• Issuance of ABS and ABCP based on securitization assets
Project financing	• Granting PF loans to SOC and real estate • Granting loans to ships/ aircrafts SPC	• Construction of SOC and real estate • Building ships/ construction and purchase of aircrafts	• Loan commitments through Credit Line, providing lines of credit and investment agreements
Trust	Management of financial trusts; • Development trust • General unspecified money trust • Principal non-guaranteed trust	• Development, management, and disposal of trusted real estate assets • Payment of trust fees and allocation of trust profits.	• Sales of financial trusts
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 of managing partners and limited partners

Details of the size of the interest in unconsolidated structured entities and the nature of risks related are as follows:


	2025
(in thousands of Korean won)	Asset-backed securitization		Investment fund		Others		Total
Total assets of unconsolidated structured entities		28,050,654,761		45,393,658,753		6,258,050,875		79,702,364,389
Assets recognized in the consolidated financial statements of the Group
Loans		1,355,306,045		119,127,758		187,729,852		1,662,163,655
Securities		5,220,766,756		2,264,299,591		5,100,000		7,490,166,347

150

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Notes to the Consolidated Financial Statements

December 31, 2025 and 2024


Investments in associates	—	375,198,960	—	375,198,960
Derivative financial assets	—	—	—	—
Other assets	9,894,795	—	—	9,894,795

	6,585,967,596	2,758,626,309	192,829,852	9,537,423,757

Liabilities recognized in the consolidated financial statements of the Group
Derivatives financial liabilities	—	—	—	—
Other liabilities	347,666	—	99,046	446,712

	347,666	—	99,046	446,712

Maximum exposure to loss
Holding assets	6,585,967,596	2,758,626,309	192,829,852	9,537,423,757
Payment guarantee and loan commitments	825,879,042	498,872,419	—	1,324,751,461

	7,411,846,638	3,257,498,728	192,829,852	10,862,175,218

The way that the maximum exposure to loss is determined	Amount of credit offerings and purchase agreement	Amount of investment commitment	Amount of investment commitment


	2024
(in thousands of Korean won)	Asset-backed securitization		Investment fund		Others		Total
Total assets of unconsolidated structured entities		27,494,499,486		36,922,739,184		1,747,360,472		66,164,599,142
Assets recognized in the consolidated financial statements of the Group
Loans		1,215,820,606		101,876,459		391,718,184		1,709,415,249
Securities		4,527,878,198		1,855,322,317		4,390,000		6,387,590,515
Investments in associates		—		299,527,388		—		299,527,388
Derivative financial assets		7,741,844		4,110,593		—		11,852,437
Other assets		4,153,655		188,710		—		4,342,365

		5,755,594,303		2,261,025,467		396,108,184		8,412,727,954

Liabilities recognized in the consolidated financial statements of the Group
Derivatives financial liabilities		—		—		—		—
Other liabilities		514,822		—		—		514,822

		514,822		—		—		514,822

Maximum exposure to loss
Holding assets		5,755,594,303		2,261,025,467		396,108,184		8,412,727,954
Payment guarantee and loan commitments		611,068,184		528,516,403		—		1,139,584,587

		6,366,662,487		2,789,541,870		396,108,184		9,552,312,541

The way that the maximum exposure to loss is determined		Amount of credit offerings and purchase agreement		Amount of investment commitment		Amount of investment commitment

151