ANNUAL REPORT 2023 INNOVATE TODAY, CREATE TOMORROW CONTENTS WOORI OVERVIEW BUSINESS REVIEW Message from the CEO Board of Directors Financial Highlights KEY Figures Group Business Portfolio Woori Bank Woori Card Woori Financial Capital Woori Investment Bank Woori Asset Trust Woori Savings Bank Woori Financial F&I Woori Asset Management Woori Venture Partners Woori Private Equity Asset Management Woori Credit Information Woori Fund Services Woori FIS Woori Finance Research Institute 004 005 006 007 032 033 042 044 045 046 047 048 049 050 051 052 053 054 055 APPENDIX Organizational Chart Global Network Disclaimer 056 057 064 2023 AUDITED FINANCIAL STATEMENTS Business Results Fact Book Sustainability Report STRATEGY REPORT Group Vision & Strategy Group-wide Synergies Digital Innovation Global Business Risk Management 018 020 022 025 028 ESG REPORT ESG Management Social Responsibility Governance 009 012 015 This report has been published as an interactive PDF and online website, allowing readers to move quickly and easily to pages in the report, and including shortcuts to related web pages and video clips. Page Video link Web 01 WOORI OVERVIEW 004 MESSAGE FROM THE CEO 005 BOARD OF DIRECTORS 006 FINANCIAL HIGHLIGHTS 007 KEY FIGURES 003 WOORI OVERVIEW ESG REPORT STRATEGY REPORT BUSINESS REVIEW FINANCIAL STATEMENT APPENDIX MESSAGE FROM THE CEO Dear Valued Shareholders and Customers, I would like to extend my heartfelt gratitude to our shareholders and customers who continuously support and trust Woori Financial Group. In 2023, our unwavering commitment to supporting our customers and communi- ties affected by economic adversities and the prolonged effects of COVID-19 was demonstrated through our participation in numerous financial aid initiatives and social contributions, truly reflecting our dedication. Moving forward, to enhance shareholder value, we repurchased and canceled treasury shares and initiated quarterly dividends for the first time since transitioning to a hold- ing company. These developments in our shareholder return policy underscore our commitment to shareholders who believe in and support the advancement of Woori Financial Group. Amid challenging environments, we established a long-term vision and strategy to become a more resilient and sustainable financial group. This included reorganizing IT operations across our bank, card, and IT subsidiaries, integrating asset management within the group, and enhancing numerous internal control systems to lay the founda- tions for future growth. While the group's financial performance fell slightly short of shareholders' expec- tations, our commitment to maintaining soundness and capital adequacy remained steadfast, showcasing the determination of our group employees to grow into a robust financial group. We are deeply grateful to our shareholders and customers for their unwavering sup- port, which enabled Woori Financial Group to achieve significant outcomes amidst challenging circumstances. Looking ahead, we anticipate ongoing systematic uncertainties, including geopolitical risks and challenges related to real estate project finance. The entry of fintech compa- nies into the financial sector and the increasing societal role of financial institutions will require agile responses and proactive preparation. In the face of these challenges, Woori Financial Group has set its sights on becom- ing a leading financial group in 2024, focusing on "Core Competency, Synergy, and Communication," with all group companies working together as one team. We plan to achieve these goals through four crucial initiatives: Firstly, we aim to strengthen our core business areas—corporate finance, wealth man- agement, and global operations—and expand our non-banking portfolio to enhance our competitiveness in capital markets. We will also explore new opportunities in con- vergent businesses to secure future growth drivers and expand our customer base. Secondly, we will enhance our risk management capabilities to effectively address uncertainties and upgrade our internal control systems to eliminate blind spots and prioritize consumer protection. Thirdly, we aim to foster synergy within the group to meet the diverse financial needs of our customers. Concurrently, we will enhance our digital and IT capabilities, with plans to launch the group’s integrated app, New WON, in the second half of this year, offering differentiated digital services and experiences. Finally, trust will remain the cornerstone of our operations. We will proactively fulfill our social responsibilities, aiming to grow alongside our customers. Building on our achievement of the top 'AAA' rating in MSCI ESG evaluations last year, we will maintain our leadership in ESG management within the financial sector, including addressing the climate crisis. Respected shareholders and customers, 2024 will be a pivotal year for Woori Financial Group as we strive to advance as a lead- ing financial institution. Despite challenging environments, all employees of Woori Finan- cial Group are committed to working together with unity to maximize corporate value through exceptional management practices and to earn the trust of our customers. We sincerely ask for your continued interest, love, and support as we navigate forward. Thank you. Jong-Yong Yim Chairman & CEO Woori Financial Group 004 WOORI OVERVIEW ESG REPORT STRATEGY REPORT BUSINESS REVIEW FINANCIAL STATEMENT APPENDIX Su-Young Yun Independent Director Eun-Ju Lee Independent Director Chan-Hyoung Chung Independent Director Yo-Hwan Shin Independent Director In-Sub Yoon Independent Director Sung-Bae Ji Independent Director Jong-Yong Yim Woori Financial Group Chairman & CEO •B.A. in Economics, Yonsei University •M.A. in Economics, University of Oregon •Former Senior Secretary to the President for Economic Affairs •Former Deputy Minister, Prime Minister’s Office •Former Chairman & CEO, NongHyup Financial Group •Former Chairman, Financial Services Commission •B.A. in Economics, Seoul National University •Master of Economics, Seoul National University •Former Head of Management Planning Office, and General Senior Vice President of Sales Support Division and Asset Management Division, Kiwoom Securities Co., Ltd. •Former CEO, Kiwoom Asset Management •Former Senior Executive Vice President, Kiwoom Securities Co., Ltd. •B.A. in Communications, Seoul National University •M.A. in Communications, Seoul National University •Ph.D. in Communications, Stanford University •Director of the Center for Trustworthy AI •Head of the Social Science Research Division on•Board Member, Center for Social value Enhancement Studies •President of the International Communication Association(ICA) •Professor, Dept. of Communication, Seoul National University Sunyoung Park Independent Director •B.A. in Economics, Seoul National University •M.A. in Economics, Yale University •Ph.D. in Economics, Yale University •Advisory Board, Bank of Korea •Advisory Board, Financial Services Commission •Member of Digital Asset Private-Public Joint TF •Associate Professor of Economics, Dongguk University •Dean, Office of International Affairs, Dongguk University •Business Administration, Korea University •Master of Finance, Korea University Business School •Former Senior Vice President, Management Planning Office, Korea Investment & Securities •Former CEO and President, Korea Investment Management Co., Ltd. •Former CEO, POSCO Venture Capital Co., Ltd. •Business Administration, Korea University •Master of Science in Financial Engineering, Illinois State University •Former Head of Retail Sales Division, Shinyoung Se- curities •Former General Management Executive, Shinyoung Securities •Former CEO, Shinyoung Securities •B.A. in Applied Statistics, Yonsei University •Master of Accounting, Yonsei University Business School •Former CEO and President, Korea ING Life Insurance Co., Ltd. •Former CEO and President, Hana HSBC Life Insurance Co., Ltd. •Former General Representative Director, Korea Ratings •Former Chairman of the Board of Fubon Hyundai Life Insurance •Business Administration, Seoul National University •Master of Business Administration, Seoul National University Business School • Former Samil Accounting Firm •Former CEO, IMM Co., Ltd. •Former 14th Chairman of Korea Venture Capital Association •CEO, IMM Investment BOARD OF DIRECTORS 005 WOORI OVERVIEW ESG REPORT STRATEGY REPORT BUSINESS REVIEW FINANCIAL STATEMENT APPENDIX 2021 2022 2023 YoY Growth (KRW in trillions) Total Assets including AUM 594.4 640.3 672.5 5.0% Loans 332.8 343.8 365.8 6.4% Total Equity 28.9 31.6 33.4 5.6% Profitability (KRW in trillions) Net Interest Income 6,986 8,697 8,743 0.5% Non-Interest Income 1,358 1,149 1,095 -4.7% Net Income 1) 2,588 3,142 2,506 -20.2% NIM(Bank)(%) 1.37 1.59 1.56 -0.03%p NIM(Bank+Card)(%) 1.62 1.84 1.82 -0.02%p Cost-to-Income Ratio(%) 2) 47.5 44.4 43.5 -0.9%p ROE(%) 1) 10.58 11.54 8.25 -3.29%p ROA(%) 3) 0.66 0.70 0.54 -0.16%p Asset Quality NPL Ratio(%) 0.30 0.31 0.37 0.06%p Coverage Ratio(%) 192.2 217.6 220.1 2.5%p Capital Adequacy Common Equity Capital Ratio(%) 11.4 11.6 12.0 0.4%p Tier1 Ratio(%) 13.3 13.6 14.1 0.5%p BIS Ratio(%) 15.1 15.3 15.8 0.5%p Loan Portfolio(Bank) Assets Assets Loan Portfolio(Bank) NIM Capital Adequacy Ratio 672.5 311 1.82% 15.8% (KRW in trillions) (KRW in trillions) (KRW in trillions) (KRW in trillions) (Bank+Card) 1) Net Income, ROE : Based on Controlling interests 2) Cost-to-Income Ratio : Excluding ERP expense 3) ROA : Including non-controlling interests (BIS Ratio) FINANCIAL HIGHLIGHTS 2023 ■ Loans ■ Total Assets (Including AUM) 365.8 672.5 2022 343.8 640.3 2021 332.8 594.4 4 5. 2 1 36 .4 1 25 .2 3.9 ● Large Corp. 45.2 ● SME 125.2 ● Retail 136.4 ● Public & Others 3.9 (As of Dec. 2023) 006 WOORI OVERVIEW ESG REPORT STRATEGY REPORT BUSINESS REVIEW FINANCIAL STATEMENT APPENDIX KEY FIGURES (Woori Bank) 25.5million 24 countries 580 network 1.99million 11Out of 38 Large Enterprises 711branches 27 thousand employees Customers SME/SOHOs Conglomerates (Including AUM) 365.8trillion 672.5trillion 357.8trillion Loans Assets Deposits Domestic Branches Employees Global Network ESG Ratings Credit Ratings (Woori Bank) (Woori Bank) Total number of large enterprises where Woori Bank is the major creditor bank Received "A"rating from KCGS Received "AAA"rating from MSCI International Ratings Domestic Ratings Moody's Moody's NICE Investors Service S&P S&P Korea Ratings Corporation Fitch Fitch Korea Investors Service Woori Financial Group A1 AAA Aa2 A+ AAA AA A AAA AA- Republic of Korea Woori Bank KRW KRW KRW (As of Dec. 2023) 007 WOORI OVERVIEW ESG REPORT STRATEGY REPORT BUSINESS REVIEW FINANCIAL STATEMENT APPENDIX 02 ESG REPORT 009 ESG MANAGEMENT 012 SOCIAL RESPONSIBILITY 015 GOVERNANCE 008 WOORI OVERVIEW ESG REPORT STRATEGY REPORT BUSINESS REVIEW FINANCIAL STATEMENT APPENDIX Recently, non-financial performance metrics such as environmental protection, social responsibility, and transparent management have become essential indicators of corporate value. These metrics emphasize sustainability beyond just financial performance, and the importance of ESG management is growing steadily, with global institutional investors prioritizing ESG considerations in their investment decisions. In addition, ESG disclosure standardization and mandatory reporting are being promoted by major international organizations and countries, leading to an expanding demand for ESG information disclosure linked to financial performance. In line with these trends, Woori Financial Group aims to leap forward as the industry’s 'Leader in ESG' in 2024, building upon the achievements accomplished through the establishment of an ESG management system in 2021, the enhancement of ESG management in 2022, and the reinforcement of global ESG activities in 2023. Woori Financial Group will further strengthen its ESG management system through proactive compliance with mandatory ESG disclosures and the implementation of a differentiated ESG strategies. ESG MANAGEMENT Recently, non-financial performance metrics such as environmental protection, social responsibility, and transparent management have become essential indicators of corporate value. These metrics emphasize sustainability beyond just financial performance, and the importance of ESG management is growing steadily, with global institutional investors prioritizing ESG considerations in their investment decisions. In addition, ESG disclosure standardization and mandatory reporting are being promoted by major international organizations and countries, leading to an expanding demand for ESG information disclosure linked to financial performance. In line with these trends, Woori Financial Group aims to leap forward as the industry’s 'Leader in ESG' in 2024, building upon the achievements accomplished through the establishment of an ESG management system in 2021, the enhancement of ESG management in 2022, and the reinforcement of global ESG activities in 2023. Woori Financial Group will further strengthen its ESG management system through proactive compliance with mandatory ESG disclosures and the implementation of a differentiated ESG strategies. E S G Climate Risk Management •Completion of measuring group internal and financed emissions and establishing mid-long term reduction targets to achieve 2050 Net Zero •Group carbon emission plans validated by SBTi (Aug. 2023) Enhance ESG Finance •Issued KRW 3.3 trillion in ESG Bond (including KRW 80 billion Green Bond), in 2023 Establishment of Human Rights Management System •Conducted human rights impact assessments to identify poten- tial human rights risks and transparently disclosed risk mitigation activities and results Active Practice of Inclusive Finance •Expanded co-prosperity finance through the 『 Woori Co-prosperity Finance Package 』 Expansion of Social Contributions through Non-Profit Public Foundation Enhancing Shareholder Value •Total shareholder return of 33.8% (FY2023) •Initiation of quarterly dividends & share buyback·cancellation KRW 100 billion (FY2023) Expanding Board Diversity •Female board members portion 25% (As of March 2024) •Female candidates for BOD: 45%(14.5%p increase from 2022) Enhancing Corporate Culture •Enhanced communication between working-level employees and top management(‘CEO Town Hall Meeting’ and etc.) and other initiatives Environment Promoting Eco Friendly Management Social Creating Social value Governance Enhancing Transparent Management 009 WOORI OVERVIEW ESG REPORT STRATEGY REPORT BUSINESS REVIEW FINANCIAL STATEMENT APPENDIX 2023 ACHIEVEMENTS Enhanced ESG Governance The ESG Management Committee of Woori Financial Group (a committee within the board of directors), which oversees the ESG management of the group, receives time- ly reports related to ESG management and thoroughly reviews and manages them. In March 2024, two female independent directors were appointed to the Board, with one—an ESG expert—appointed as the chairperson of the ESG Management Com- mittee. This has enhanced the board’s diversity and expertise while also promoting sustainable growth based on ESG management. Established Group Climate Risk Response Framework Establishment of Carbon Reduction Targets Certified by the SBTi In June 2023, Woori Financial Group established its carbon reduction targets, which received approval from the Science-Based Targets initiative (SBTi) in August 2023. Ad- ditionally, by including TCFD information disclosures in the "2022 Woori Financial Group Sustainability Report," we provided details about the group’s climate risk management. Internalization of Group ESRM Standards In September 2023, Woori Financial Group introduced environmental & social risk man- agement (ESRM) standards across sectors with a significant environmental and social impact, promoting a low-carbon economy through responsible asset management and increased green financing. Enhanced Global Initiatives Woori Financial Group is leading global efforts in transitioning to a circular economy and conserving biodiversity. As a financial sector leader, it actively collaborates with international organizations to develop new global standards. Notably, it is the only Ko- rean company participating in the UNEP FI (UN Environment Programme Finance Ini- tiative) working group on resource circulation and the circular economy, contributing to the development of global guidance. Additionally, through an MOU with AFoCO (Asian Forest Cooperation Organization), Woori Financial Group became the first Korean financial institution to undertake the REDD+ (Reducing Emissions from Deforestation and forest Degradation Plus) project in Cambodia, aiming to promote biodiversity con- servation through sustainable forest management. Visits to ESG International Organizations In October 2023, Woori Financial Group was invited to extensive discussions on miti- gating the climate crisis and international cooperative initiatives for restoring the planet by several ESG international organizations, including the UNEP FI, the UN Convention to Combat Desertification (UNCCD), and the International Union for Conservation of Na- ture (IUCN). Advanced Human Rights Management In September 2023, Woori Financial Group launched a human rights management system and conducted an impact assessment to protect and bolster stakeholders’ rights, with the results later published on the Group’s website. It also continues to embed human rights management across all subsidiaries and promote a culture of respect for human rights. Furthermore, the Group has set forth its gender diversity goals for 2030, striving to enhance gender equality and expand its diverse talent pool, underscoring its commitment to ethical governance and social responsibility. Co-Prosperity Finance Through the 「Woori Co-Prosperity Finance Package 3.3」, Woori Financial Group proactively provided tangible benefits such as interest rate cuts for small business owners, self-employed individuals, and vulnerable groups facing economic challeng- es. Additionally, we provided financial service totaling 275.8 billion KRW to assist small business owners and self-employed individuals Engagement in Global Initiatives Mar. 2006 UN Global Compact Nov. 2019 UNEP FI(UN Environment Programme Finance Initiative) Jan. 2020 UNEP FI PRB(UNEP FI Principles for Responsible Banking) Jan. 2021 TCFD(Taskforce on Climate- related Financial Disclosures) Feb. 2021 CDP(Carbon Disclosure Project) Aug. 2021 Equator Principles(EP) Aug. 2021 PCAF(Partnership for Carbon Accounting Financials) Sep. 2021 SBTi(Science Based Targets initiative) Jan. 2022 TNFD(Taskforce on Nature- related Financial Disclosures) May. 2022 Business for Land(B4L) Aug. 2022 PBAF(Partnership for BiodiversityAccounting Financials) Oct. 2022 NZBA(Net Zero Banking Alliance) Dec. 2023 Obtaind an 'AAA'rating from MSCI ESG assessment 010 WOORI OVERVIEW ESG REPORT STRATEGY REPORT BUSINESS REVIEW FINANCIAL STATEMENT APPENDIX PLAN FOR 2024 Proactive Adoption of the ESG Mandatory Disclosure Woori Financial Group plans to establish a cooperative ESG disclosure framework throughout the organization to proactively comply with global regulations such as the International Sustainability Standards Board (ISSB), the Corporate Sustainability Reporting Directive (CSRD)/European Sustainability Reporting Standards (ESRS), and the US SEC’s climate disclosure requirements, thus boosting the transparency and reliability of its ESG management practices. Enhanced Responses to Climate Risks With the aim of achieving carbon neutrality by 2050, Woori Financial Group is guiding its subsidiaries in setting internal carbon reduction targets and will continuously manage their progress. It also plans to bolster climate risk management by adhering to TCFD rec- ommendations and intensifying related disclosures. Strengthening Participation in Global Initiatives Woori Financial Group is intensifying its collaboration efforts with global initiatives and international organizations, including the UNEP FI, UNCCD, etc, to advance corporate environmental and social responsibilities. We are committed to implementing differ- entiated strategies for the conservation of natural resources and biodiversity. In part- nership with the government of Cambodia and AFoCO, the Group is actively pursuing projects that aim to preserve Cambodian forests, biodiversity, and improve the quality of life for indigenous populations, thereby generating sustainable social value. Strengthening Co-prosperity Finance and Socially Responsible Financing Woori Financial Group is expanding its commitment to social responsibility through co-prosperity finance initiatives and social contributions that reach out to a broad range of stakeholders. Accordingly, the group is committed to practicing co-prosperity finance, encompassing financial support, to nurture co-prosperity. In addition, through its foundations, the group plans to continue supporting socially underprivileged groups and nurturing future generations across various sectors. ESG Vision & Strategy 2023 ESG Evaluations Certifications and Awards Feb. 2023 • Received the Chairman of the National Policy Committee Award at the 2023 Korea Green Climate Awards Apr. 2023 • Named an Excellent Company (finance category) at the 2023 JoongAng ESG Management Awards May 2023 • Received the 2023 Sustainable Leadership Enterprise Award (overall ESG category) May 2023 • Honored as a Best Company at the ESG Korea Awards Sep. 2023 • Received the ESG Management Award at the 2023 Asia Today Financial Awards Nov. 2023 • Won the Chairman of the National Policy Committee Award at the 2023 Korea Sustainable Management Communication Awards Dec. 2023 • Received a Presidential Commendation (overall ESG category) at the Korean government’s 2023 Awards for Excellence in Sustainable Management 2021 2022 2023 MSCI AA AA AAA* DJSI Listed on the Asia-Pacific Index Listed on the Asia-Pacific Index Listed on the Asia-Pacific Index KCGS A A A ESG Vision Mid-to Long-term Goals 3 Key Strategies & 9 Major Strategic Tasks Good Finance for the Next We will achieve Carbon Net-Zero within the Group and across our asset portfolio by 2050 and provide KRW 100 trillion in ESG financing by 2030 Expanding Eco-friendly Management Creating Social Value Enhancing Transparent Management •Promoting green finance •Establishing a climate change response system •Strengthening environmental management system •Expanding social finance •Enhancing financial consumers’ rights •Establishing a culture that respects human rights and di- versity •Strengthening ESG finance management system •Disclosing ESG information tranparently •Advancing ESG governance E S G * The AAA rating represents the highest possible tier and is attained by only the top 5% of companies assessed in the banking sector. 011 WOORI OVERVIEW ESG REPORT STRATEGY REPORT BUSINESS REVIEW FINANCIAL STATEMENT APPENDIX SOCIAL RESPONSIBILITY Finance Education Social Contribution Activities Expanding WOORI Senior IT Leaning Center To address the digital divide among the elderly and enhance their access to digital financial services, Woori Bank established WOORI Happy IT SIlver Academy within community centers for elderly citizens. Following the opening of the first center in Eun- pyeong-gu in 2022, five additional centers opened in 2023 in Jung-gu, Jungnang-gu, Gwanak-gu, Mapo-gu, and Yangcheon-gu. The plan is to further expand these IT sil- ver academies to other districts of Seoul and metropolitan areas in 2024. 2023 One Company-One School Finance Education The One Company-One School Finance Education program is a pan-financial sector education program targeting teenagers. In collaboration with a financial education NGO, the program aims to enhance and standardize the quality of financial education. In 2023, 535 elementary, middle, and high schools nationwide partnered with Woori Bank branch- es to deliver 516 sessions. In total, the program educated 15,627 students from 115 schools in 2023. The program includes various experiential financial education activities, such as mock stock trading competitions, career mentoring camps in the financial sector, and financial knowledge contests to maximize educational effectiveness. Woori Bank Museum’s Finance Class for Children The Woori Bank Museum operates a variety of finance and history education programs for our future generations. In 2023, a total of 1,617 children participated in 89 sessions across four different programs. Woori Bank Museum 2023 Programs WOORI Happy IT Silver Academy List Program Description WOORI Economics Homeschool Online financial classes for children from underprivileged backgrounds via learning materials at community childcare centers •998 children from 55 centers benefited in 2023 Let’s Go! Bank Expe- dition! Real-time financial classes via virtual tours of the bank and museum in the Metaverse •148 children participated in 11 sessions in 2023 Vroom Vroom, Around the Museum Exhibit tours and interactive financial classes for groups of young children visiting the museum •371 children participated in 17 sessions in 2023 Bank History Narra- tor by Banker Families School vacation special financial classes on bank history and interactive learning sessions for elementary students during school vacations •100 students participated in 6 sessions in 2023 Branch Location Eunpyeong Branch Yeokchon Senior Welfare Center Opened in 2022 Jung-gu Branch Yurak Welfare Center Opened in 2023 Jungnang-gu Branch Sinnae Senior Welfare Center Yangcheon-gu Branch Sinwol Welfare Center Gwanak-gu Branch Gwanak Senior Welfare Center Mapo-gu Branch Seongsan Welfare Center WOORI Economics Homeschool WOORI Happy IT SIlver Academy Vroom Vroom, Around the Museum One Company-One School Finance Education 012 WOORI OVERVIEW ESG REPORT STRATEGY REPORT BUSINESS REVIEW FINANCIAL STATEMENT APPENDIX Employee-Driven Social Contribution Activities Increasing Support for Pediatric Cancer Patients Woori Bank expanded its support for children with cancer through the Woori Love Fund, a donation fund created by its employees. This initiative supports med- ical care, education, and psychological counseling for children from underprivileged backgrounds with pedi- atric cancer. In 2023, a total of 350 pediatric patients received KRW 200 million in support. Additionally, Woori Bank supported the establishment of Naeum Woori, a shelter for pediatric cancer patients from outside Seoul to stay in Seoul while receiving cancer treatments. Woori WON Click Donation Box Woori Bank operates the Woori WON Click Donation Box on its digital channels to raise funds in support of those affected by major disasters and calamities. In 2023, Woori Bank opened this donation service to support victims of the February earthquake in Turkey and Syria as well as flood victims from Korea in August. A total of 3,713 donations amounting to approximately KRW 120 million were collected and subsequently do- nated to these causes. Event Period Number of Donations Fund Amount Turkey-Syria Earthquake Feb. 12-28, 2023 3,261 KRW 106,100,289 Support for Flood Victims in Korea July 20-Aug 4, 2023 452 KRW 13,897,681 Cooperating in SSAFY program Woori Bank participated in the Samsung S/W Acade- my for Youth (SSAFY) program by Samsung Electronics to foster young software talent and enhance their em- ployability. As part of this effort, the bank selected and then supported experienced IT/digital development staff as mentors. Furthermore, Woori Bank employees who are SSAFY graduates provided job mentoring to share insights and tips with SSAFY participants aspir- ing to enter the financial sector. Employee Volunteer Activities Woori Bank’s Woori Love Sharing Center program pro- motes co-prosperity with local communities by pairing bank branches nationwide with nearby social welfare centers for regular volunteer services. In 2023, a total of 4,620 employees participated in 527 volunteer sessions at the Woori Love Sharing Center and other welfare centers, while also donating KRW 500 mil- lion to help support the underprivileged in local areas throughout Korea. Woori Love Fund Since 2003, Woori Bank has been running the Woori Love Fund, which allows employees to voluntarily do- nate a certain amount from their monthly paychecks to the fund. In 2023, an average of 4,614 employees participated each month, raising a total of KRW 335 million by the end of the year. This fund was used to carry out various social contribution projects aimed at supporting underprivileged groups, with a total of KRW 380 million being utilized for these initiatives. Support for Pediatric Cancer Patients Woori WON Click Donation Box Woori Love Sharing Center Social Contribution Activities 2021 •Support : Treatment, learning, psychological counseling •Amount : KRW 220 million •No. of Beneficiaries : 63 children 2022 •Support : Treatment, learning, psychological counseling •Amount : KRW 200 million •No. of Beneficiaries : 250 children 2023 •Support : Conventional support + Shelter program (new) •Amount : KRW 500 million •No. of Beneficiaries : 770 children 2024 •Support : Conventional support + Shelter program (new) •Amount : KRW 500 million •No. of Beneficiaries : 770 children Hosting the 26th Woori Bank Woori Art Contest In 2023, Woori Bank held its 26th Art Contest under the slogan “Creating a Better World Together, Believe in Woori!” The contest aimed to convey the values of sharing and coexistence to children and teenagers— our future leaders. A total of 7,608 children and teen- agers participated in the preliminary round, and among the 349 finalists, two winners received the Minister of Culture, Sports and Tourism Award and the Woori Bank President’s Award. Hosting the 26th Woori Bank Woori Art Contest Hosting the 26th Woori Bank Woori Art Contest 013 WOORI OVERVIEW ESG REPORT STRATEGY REPORT BUSINESS REVIEW FINANCIAL STATEMENT APPENDIX Charity Walk Campaign The Charity Walk Campaign is a pedometer-based donation initiative aimed at supporting international climate crisis efforts to limit the global temperature in- crease to 1.5℃. All Woori Bank employees collectively aimed to donate a total of 150 million steps. In 2023, a total of 12,430 employees participated in the cam- paign, which was held twice, once in the first half and the other in the second half of the year, successfully achieving the step goal. Family-Inclusive Employee Volunteer Activity: Tree-Planting at Noeul Park In April 2023, more than 50 Woori Bank employees and their families, in collaboration with the Noeul Park Citizen Group, volunteered in a tree-planting event aimed at ecological restoration of the park. This once- landfill-turned-park is being revitalized to contribute to the creation of a sustainable ecosystem. Support for Eco-Friendly Energy Installa- tions and Environmental Education This project involves supporting high-efficiency eco-friendly energy installations in outdated social welfare centers. The proceeds from selling the carbon credits gained are reinvested to fund environmental education for future generations, creating a virtuous cycle of social contribution. This initiative is funded through the Woori Love Fund, which consists of do- nations from employees’ payroll deductions. In 2023, eco-friendly energy installations were completed at two energy-vulnerable social welfare centers. In ad- dition, environmental education was conducted for a total of 1,000 children in daycare centers nationwide. Tree-Planting at Noeul Park Eco-Friendly Social Contribution Projects EMPLOYEE SATISFACTION Woori Bank believes that happy, fulfilled employees can serve customers to their highest satisfaction. Since 2008, the bank has run an Employee Satisfaction Center, developing and operating a wide variety of programs. These initiatives aim to enhance job satisfaction, foster a sense of ownership, and encourage a positive mindset towards customers. Employee Satisfaction and Labor-Management Cooperation Programs Every month, Woori Bank operates a range of programs to heighten employee satisfaction based on employee pref- erences, including travel, hands-on activities, hobbies, and cultural activities. Through these programs, employees gain new experiences and enjoy valuable time with their families and colleagues. Additionally, the bank organizes labor-management cooperation programs such as W-MEGA3 at theme parks around the country, as well as inter- cultural experience events that provide opportunities for overseas cultural exposure, three-day family camping events, screen golf tournaments, and local cultural festivals, all of which help contribute to higher employee satisfaction. Free Wedding Venue for Woori Bank Employees Woori Bank offers its employees the opportunity to use the bank’s headquarters auditorium as a wedding venue free of charge throughout the year. The spacious and elegantly managed facility has received a tremendous amount of positive feedback from employees. The free use of the venue not only reduces wedding costs but also fosters a sense of loyalty among employees, in addition to increasing productivity. Support for Eco-Friendly Energy Installations 014 WOORI OVERVIEW ESG REPORT STRATEGY REPORT BUSINESS REVIEW FINANCIAL STATEMENT APPENDIX GOVERNANCE Governance Structure As of the end of March 2024, the Board consists of a total of eight members (seven independent directors, one standing director). The board, including the Audit committee, is operating a total of six committees. Par- ticularly, in order to preemptively implement ESG management strategy and execution framework, and to strengthen the group’s ESG governance, we have set up a ESG Management Committee since March 2021. General Shareholders’ Meeting Board of Directors (8 directors) CEO •Tasks related to the recommendation of candidates for Executive Director, Independent Directors, and members of the Audit Committee •Fair verification of the qualifications of executive candidates as defined by relevant laws, regulations, and internal rules •Tasks related to the recommendation of subsidiary Executive Director candidates •Role in the establishment and modification of subsidiary management succession plans •Supervision of the duties of directors and management •Appointment of external auditor and request for dismissal •Establishment of fundamental policies and strategies for risk management •Determination of an acceptable level of risk •Approval of appropriate investment limits and loss tolerance limits •Establishment and amendment of risk management standards •Assessment of the adequacy of the design and operation of the performance compensation system •Independently establish compensation policies and carry out duties •Determination of management candidates •Performance evaluation and compensation of executives •Managing annual reports disclosures and performance compensation updates •Matters related to the establishment of ESG management strategic direction and policy •Matters concerning important decision-making related to ESG management Officer Candidates Recommendation Committee(All independent directors) Audit Committee (4 independent directors) Risk Management Committee (3 independent directors) Compensation Committee (4 independent directors) Subsidiary Representative Director Candidate Recommendation Committee (8 directors) Board ESG Management Committee (All directors) Board of Directors Secretariat Audit Department Risk Management Department ESG Management Department Management Support Department Woori Financial Group is dedicated to fostering sustainable growth to protect the interests of stakeholders, including shareholders and consumers. We strive to uphold a stable, efficient, and transparent governance structure. Consequently, in 2023, Woori Financial Group received an 'AAA' rating in the MSCI ESG assessment. Additionally, we were recognized for our achievements by being included in the Dow Jones Sustainability Indices (DJSI) Asia-Pacific Index for the third consecutive year. 015 WOORI OVERVIEW ESG REPORT STRATEGY REPORT BUSINESS REVIEW FINANCIAL STATEMENT APPENDIX Independent Director Candidate Pool Female Independent Director Candidate Pool YoY +4%p (Unit: %) ● Male ● Female Woori Financial Group has constituted its board of directors, the supreme decision-making body, with experts from various fields who possess a diverse range of experiences and knowledge, ensuring that it is not biased towards a specific background or profession. 2022 41% 45% 114 59 59% 55% Independence Independent Standing Director Chan-Hyoung Chung In-Sub Yoon Su-Young Yun Yo-Hwan Shin Sung-Bae Ji Eun-Ju Lee Sunyoung Park Jong-Yong Yim Gender Male Male Male Male Male Female Female Male Key Expertise Financial ● ● ● ● ● ● ● Economics ● ● ● Management ● ● Accounting ● ● Finance ● ESG ● Insurance Business ● Securities Business ● ● ● VC ● Risk ● Digital ● ● Communications ● Director Since Jan. 2019 Jan. 2022 Mar. 2023 Jan. 2022 Mar. 2023 Mar. 2024 Mar. 2024 Mar. 2023 Diversity and Expertise of the Board Board Composition Diversity 2024 2023 13% ● Others 20% ● Financial/Economics/Business Management 22% ● Law/Accounting 12% ● ESG 25% ● Digital/IT 8% ● Consumer Protection 8 % 1 3 % 20 % 1 2 % 2 2 % 2 5 % (As of Mar. 2024) 016 WOORI OVERVIEW ESG REPORT STRATEGY REPORT BUSINESS REVIEW FINANCIAL STATEMENT APPENDIX 03 STRATEGY REPORT 018 GROUP VISION & STRATEGY 020 GROUP-WIDE SYNERGIES 022 DIGITAL INNOVATION 025 GLOBAL BUSINESS 028 RISK MANAGEMENT 017 WOORI OVERVIEW ESG REPORT STRATEGY REPORT BUSINESS REVIEW FINANCIAL STATEMENT APPENDIX GROUP VISION & STRATEGY Since its inception in 1899 as a bank, Woori Financial Group has evolved alongside Korea's economic progress to emerge as a leading financial institution. With a global presence across 24 countries, Woori Financial Group has actively expanded into global markets and diversified its operations in sectors such as credit cards, investment banking, and asset management. In 2024, the group will prioritize managing its risk-weighted assets and implement strong risk management practices, while focusing on businesses related to corporate finance and asset management. Simultaneously, we will strengthen collaboration between subsidiaries to further bolster synergy among the group. Additionally, we remain committed to fulfilling our social responsibilities, including consumer protection to the best of our ability. Vision Under the vision "Innovate Today, Create Tomorrow," Woori Financial Group aims to provide exceptional value to customers by leading the market with ex- pertise and innovation. Building on our rich heritage, we have embraced the slogan "The First Choice in Finance" to underscore our dedication to becoming the most trusted and respected financial institution. Therefore, we prioritize customer loyalty, trust, ex- pertise, and innovation as our core values. These values drive our commitment to placing customers and the community at the forefront, fostering trust through principled conduct, and leading the market as financial experts who shape the future through innovation. VISION SLOGAN CORE VALUE Innovate Today, Create Tommorrow The First Choice in Finance CUSTOMERS TRUST EXPERTISE INNOVATION Woori considers of its customers and the community first. Woori builds customer trust based on principles. Woori has the expertise to lead the market. Woori shapes the future through innovation. Innovating today to deliver greater value tomorrow. Inheriting our deep legacy, we are determined to become the most reliable and trusted financial institution. 018 WOORI OVERVIEW ESG REPORT STRATEGY REPORT BUSINESS REVIEW FINANCIAL STATEMENT APPENDIX 2024 GROUP STRATEGY The management goal for Woori Financial Group in 2024 is to become a leading financial group through 「Focus on Core Competency · Synergy · Communication」. Based on a thorough analysis of the 2024 business environment and its mid- to long-term management plans, Woori Financial Group has formulated seven strategic management objectives as follows: Boosting Core Business Competitiveness The group aims to enhance its market position in corporate banking by expanding its market share in new growth sectors and high-quality assets. Following its entry into the securities industry, it will strengthen the growth drivers of Woori Investment Bank and asset management subsidiaries to bolster the group’s presence in capital markets. Its global strategy includes establishing new hubs, such as in Poland, and actively fostering growth in its top three Southeast Asian subsidiaries, which contributes 42% of the overseas profits. 01 Securing Future Growth Foundation While the group actively pursues the acquisition of a securities firm, non-bank subsidiaries will strategically focus on mid- to long- term growth drivers to balance the business portfolio and enhance efficiency. The holding company’s governance structure will be reorganized to promote businesses that integrate financial and non-financial services and explore new opportunities, all while se- curing a future customer base through agile business initiatives. 02 Robust Risk Management The group will prioritize growth focused on high-quality assets while ensuring capital adequacy to meet regulatory requirements. It will enhance group-wide crisis management capabilities by pro- actively monitoring soundness for each risk factor and implement- ing risk management policies tailored to the specific conditions of each country. Simultaneously, it is dedicated to proactive risk management in sectors poised for growth, reinforcing the group’s climate and digital risk management frameworks, and fostering collaboration across the group for stable risk management—a cru- cial element for the sustainable growth of the group. 03 Advancing Corporate Culture In 2023, the group witnessed the establishment of its corporate culture innovation task force, directly overseen by the chairman, along with the launch of a new bank CEO appoint- ment program, CEO Town Hall Meeting, and other initiatives. Moving into 2024, the group will intensify its efforts to develop new management, strengthen group-level training sys- tem thereby further enhancing its innovative corporate culture. Additionally, it will promote a customer-friendly corporate culture and upgrade internal control systems. 06 Expanding Group Synergies In 2023, Woori Financial Group underwent a notable paradigm shift towards synergy, laying a robust groundwork in capital market competitiveness and venturing into new business avenues. In 2024, it will further enhance its capital market competitiveness by leverag- ing group-wide synergies, expanding exploration into new business areas, and revitalizing its regional subsidiary networks to maximize synergy creation across the group. 04 Following the completion of its IT governance restructuring in January 2024, the group aims to swiftly stabilize and maximize the benefits brought about by this initiative. In the lat- ter half of the year, it plans to successfully launch NEW WON Banking, which will enhance the competitiveness of the group-wide integrated platform. Additionally, the Group will pro- actively respond to promising regulatory innovation areas such as STO and CBDC, thereby further bolstering its capabilities. Strengthening Digital/ IT Competitiveness 05 Enhancing Trust As the importance of creating social value through finance grows, we will respond to social demands by actively supporting mutual finance, aiming to enhance the group's brand stat- ure. Additionally, we will establish a K-Taxonomy system and enhance our ESG competitive- ness through active communication with investors. 07 019 WOORI OVERVIEW ESG REPORT STRATEGY REPORT BUSINESS REVIEW FINANCIAL STATEMENT APPENDIX GROUP-WIDE SYNERGIES Since the establishment of the holding company in January 2019, Woori Financial Group has continuously incorporated new subsidiaries and expanded group synergies. By fostering collaboration between subsidiaries across various business sectors and promoting synergy, Woori Financial Group has enhanced its capabilities as a comprehensive financial group, advancing financial services and maximizing profitability. The Synergy Council, comprising the holding company and all 14* subsidiaries, leads group-wide collaboration and communication, effectively generating tangible and practical synergy effects. * The number of subsidiaries declined from 15 in 2023 to 14 in 2024 following the merger of Woori Global Asset Management into Woori Asset Management in 2024. WOORI BANK WOORI CARD WOORI FINANCIAL CAPITAL WOORI INVESTMENT BANK WOORI ASSET TRUST WOORI SAVINGS BANK WOORI FINANCIAL F&I WOORI ASSET MANAGEMENT WOORI VENTURE PARTNERS WOORI PRIVATE EQUITY ASSET MANAGEMENT WOORI CREDIT INFORMATION WOORI FUND SERVICES WOORI FIS WOORI FINANCE RESEARCH INSTITUTE Enhanced Group-wide Synergies Strengthening Synergy Competitiveness 14 subsidiaries Existing subsidiaries (As of Jan. 11, 2019) Newly acquired and established non-bank subsidiaries (Mar. 2024) Continued efforts to grow the non-banking sector "Expand existing industries simultaneously" 2019 2020 2022 2023 Securities Life Insurance Non-life Insurance * Woori Investment Securities(temporary name) scheduled to launch in Aug. 2024 020 WOORI OVERVIEW ESG REPORT STRATEGY REPORT BUSINESS REVIEW FINANCIAL STATEMENT APPENDIX 2023 ACHIEVEMENTS Enhanced Group-Wide Synergies and Collaborations In its fifth year since the establishment of the holding company, Woori Financial Group’s 15 subsidiaries ini- tiated a total of 35 synergy projects in 2023, yielding significant results through cross-selling and affiliate marketing campaigns. To foster synergies, the group systematically managed key issues and projects through a variety of meetings: the Group Synergy Meeting for subsidiary CEOs, the Group Synergy Council for executives responsible for synergy tasks, and the Regional Synergy Council for regional manag- ers to gather on-site feedback. In addition, the group supported synergy creation among subsidiaries by organizing a synergy idea con- test and running a synergy bulletin board. These initia- tives, along with the operation and management of the Group-Wide Joint Marketing System, laid the founda- tion for seamless cross-selling and affiliate marketing between subsidiaries. Exploring New Opportunities and Strengthening Synergy Competitiveness In 2023, the group initiated several regional projects to unearth new business opportunities for group subsid- iaries. This included agreements with the provinces of Chungcheongbuk-do (November 2023) and Gyeo- ngsangnam-do (December 2023), thereby expanding business opportunities across the group. The group operated ‘Dino Labs’ in these partner regions to discov- er and promote local startups, while the bank worked to support local SMEs and the group increased venture investments to promote corporate value chain-driven sales and marketing activities. To enhance synergy and competitiveness in the capital markets, initiatives were undertaken to expand the sales of subsidiary fund products through banking channels. Notably, there was an increase in Woori Asset Manage- ment's fund sales via the bank, and the group strategi- cally expanded its asset management subsidiaries by adopting a more active stance in making investments, including in pensions. 2024 GROUP STRATEGY In 2024, aiming to establish itself as a premier financial group, Woori Financial Group is concentrating on bolstering the competitiveness of its subsidiaries and enhancing its capacity to deliver comprehensive financial solutions. To achieve this objective, detailed action plans have been formulated under four core strategies: At the same time, we have expanded the Woori Regional Synergy Council from four to nine regions and established a Group Synergy Working Council for working-level staff from all subsidiaries. These initiatives are designed to in- crease the opportunities for front-office feedback, streamline business discovery, and strengthen the management of synergy projects across the Group. Furthermore, the holding company will bolster collaboration among subsidiaries, especially during the integration of new subsidiaries through M&A activities, such as those involving securities and insurance companies. This strategy aims to drive growth by increasing market share in both the banking and non-banking sectors. The merger between Woori Asset Management and Woori Global Asset Management, initiated in the second half of 2023, was completed on January 29, 2024. This merger is expected to boost the AUM size, achieve economies of scale, and improve operational efficiency, with Woori Financial Group continuing to support Woori Asset Manage- ment to further strengthen its competitiveness. Looking ahead, Woori Financial Group will actively seek acquisition opportunities in business areas we do not cur- rently operate in, such as securities and insurance, focusing on targets that enhance corporate and shareholder value. Additionally, we will consider further M&A opportunities to boost the competitiveness of our existing business portfolio and elevate our market position. Expanding our Group-Wide Shared System Promoting Synergy Marketing Among Subsidiaries Strengthening Capital Market Competitiveness Discovering New Synergy Businesses 01 03 02 04 021 WOORI OVERVIEW ESG REPORT STRATEGY REPORT BUSINESS REVIEW FINANCIAL STATEMENT APPENDIX DIGITAL INNOVATION Woori Financial Group has established 'expanding customer-centric digital financial platforms' as its management objective, aiming to reinforce its growth potential and core competencies. This strategic move aligns with the response to regulatory trends favoring innovation and addresses the increased market uncertainties resulting from high interest rates, high inflation, and low growth. The Group has devised strategic pathways centered on ‘Next-generation Digital Innovation’, ‘Enhancing Technological Competitiveness’, and ‘Fortifying its Foundation for Digital Innovation’. By expanding its digital customer base and optimizing its platform, Woori Financial Group aims to strengthen its core strengths, all the while actively adapting to evolving policies and exploring diverse avenues for growth. 12 million users Next-generation Digital Innovation Enhancing Technological Competitiveness Fortifying its Foundation for Digital Innovation Woori WON Banking Woori WON Card MAUs of Digital Channels 2023 Management Objective (As of Dec. 2023) 022 WOORI OVERVIEW ESG REPORT STRATEGY REPORT BUSINESS REVIEW FINANCIAL STATEMENT APPENDIX DIGITAL INNOVATION 2023 ACHIEVEMENTS Technology Innovation and New Businesses To deliver a differentiated customer experience, the Group launched Woori WON Certification, the first cloud computing-based certification service in the Korean bank sector, and opened a customer data platform to collect and utilize real-time customer be- havioral data from both direct and indirect channels. Furthermore, through strategic external partnerships and collaborations, the Group opened a dedicated Woori Bank Metaverse for the purpose of carrying out consultations with SOHO owners and as a digital train- ing venue for employees. Also, the Woori WON Bank- ing now features an NFT wallet capable of issuing and storing NFTs, thereby enriching the digital customer experience with cutting-edge technologies. Digital Competency-Building Woori Financial Group introduced compulsory digital training courses along with the 'Woori DT Assess- ment' test to enhance the digital skills of its workforce. Collaborating with academic institutions, Woori estab- lished the Woori Digital Academy to provide courses related to digital business planning, big data, artificial intelligence (AI), and emerging digital technologies. These initiatives target the identification and devel- opment of talent from essential subsidiaries, including Woori Bank, Woori Card, and Woori FIS, cultivating internal specialists who will drive digital finance inno- vations. Group-Wide Universal Banking To initiate the Group's Universal Banking Service, scheduled to launch in the second half of 2024, a dedicated organization was established to commence the project following consultations regarding '(ten- tative name) New WON'. This financial platform will seamlessly integrate the Group’s key financial and non-financial services, while providing: ① customized financial services to individual customers; ② essential non-financial services for daily life; and ③ key services from Group subsidiaries. To achieve this, the platform will prioritize user-friendliness, with plans to expand the platform ecosystem through active partnerships with industries such as mobility and healthcare. Group IT Governance Innovation After completing a significant overhaul of its IT gover- nance, Woori Financial Group established a Biz-IT col- laboration framework. To enhance IT competitiveness and the software development process, developers who were previously part of the IT subsidiary have been reassigned to various departments within the Bank and Card subsidiary. By internalizing development tasks, the efficiency of platform and system development and operations has been increased. This adjustment will es- tablish an agile work method capable of responding in a timely manner to rapidly changing digital trends. Expansion of the External Ecosystem Woori Financial Group’s startup discovery and nurtur- ing program, DINNOlab (Digital Innovation Lab), is driv- ing its future digital business through a variety of col- laborations with startups. Since its inception in 2016, DINNOlab has offered customized programs tailored to the situation and needs of businesses, from busi- ness advancement to partnerships and investments. By 2023, it had discovered a total of 137 promising startups and supported 42 collaborations with Group subsidiaries. In addition, an investment support system tailored to the entire growth cycle of companies has been established to hone investment functions. Plans are also underway to continue expanding the neces- sary support for external fintech and innovative start- ups and to strengthen group linkages, including the establishment of centers in South Gyeongsang and North Chungcheong provinces to support the creation of local entrepreneurial ecosystems. Certifications and Awards 2023 Metaverse ESG Awards, Excellence Award from the Director of the Information and Communication Technology Planning and Evaluation Institute - Organized by IT Chosun Daily 023 WOORI OVERVIEW ESG REPORT STRATEGY REPORT BUSINESS REVIEW FINANCIAL STATEMENT APPENDIX DIGITAL STRATEGIES FOR 2024 By 2024, Woori Financial Group aims to substantially boost its digital competitiveness by leveraging the comprehensive capabilities of its Group platform. The strategy involves entering into large-scale partnerships with different industries and launching direct businesses to expand the new customer base and create new revenue streams, thus spearheading future innovations and driving new growth engines. Based on this, three major strategies have been established: the expansion of new business-based financial ecosystems, enhancement of Group digital competitiveness, and continuous strengthening of digital innovation. Expanding the Financial Ecosystem through New Businesses The Group will propel new business initiatives through strategic alli- ances, direct business ventures, and the identification of promising firms for investment or collaboration. Sector-specific strategies will be formulated, along with measures to facilitate the activation of new business ventures within the Group and its subsidiaries, taking a pro- active stance to lead these changes and innovations. Additionally, the Group will broaden the domestic and international reach of its startup discovery and nurturing program, DINNOlab, while establishing spe- cialized investment funds for DINNOlab companies to enhance their investment capabilities and business support. Enhancement of Group Digital Competitiveness To enable the Group's Universal Banking services, we aim to efficiently conclude the 'New WON (temporary name)' project. This will entail seamlessly integrating the core financial and non-financial services of Group subsidiaries, leveraging the Group's digital and IT capabilities for successful execution. We will establish a dedicated operation team for Group Universal Banking to implement a collaborative marketing system, facilitating the sharing of marketing information to optimize synergies among subsidiaries. Additionally, the introduction of a Group data platform for data collection, storage, utilization, and management will establish the groundwork for data-driven management. Continuous Strengthening of Digital Innovation Woori Financial Group will enhance AI capabilities, including generative AI, and foster business innovation. Furthermore, to proactively address shifts in Digital Tech trends, policies, and regulations, we intend to con- sistently monitor advancements and enhance expertise for effective change management. At the same time, the Group will continue to cul- tivate digital specialists who possess a broad range of digital/IT skills. 024 WOORI OVERVIEW ESG REPORT STRATEGY REPORT BUSINESS REVIEW FINANCIAL STATEMENT APPENDIX GLOBAL BUSINESS Woori has actively expanded into the global markets since November 1968 when it became the first domestic commercial bank to establish an overseas branch in Tokyo. As of the end of 2023, it possesses a global network spanning 24 countries with a total of 580 Networks. Currently, under the "2nd home" strategy, we will focus on developing the three major subsidiaries in the high-growth region of Southeast Asia by pursuing balanced growth in retail and corporate banking. Overseas Subsidiaries Overseas Branches Representative Offices 580 14 15 8 7 New York Woori America Bank AO Woori Bank(Russia) Woori Bank China Limited Tutu Finance-WCI Myanmar Woori Finance Myanmar WB Finance Co., Ltd.(Cambodia) PT Bank Woori Saudara Indonesia Woori Wealth Development Bank (Philippines) Woori Global Markets Asia Limited (Hong Kong) Banco Woori Bank do Brazil S.A. Woori Bank Europe Gmbh(Germany) Woori Bank Vietnam Bahrain London Hungary UAE India Bangladesh Singapore Malaysia Poland Sydney Seoul Japan Los Angeles (As of the end of 2023) Total Networks (in 24 countries) Overseas Subsidiaries Overseas Branches Overseas Sub-branches Representative Offices 025 WOORI OVERVIEW ESG REPORT STRATEGY REPORT BUSINESS REVIEW FINANCIAL STATEMENT APPENDIX 2023 ACHIEVEMENTS GLOBAL BUSINESS Strategic Global Expansion to Secure Sus- tainable Growth In 2014, Woori Bank initiated Woori Saudara Bank in Indonesia, marking the first cross-border acquisition of a foreign-listed bank by a Korean commercial bank. This expansion continued with the establishment of a Vietnamese subsidiary in 2017, the second such ven- ture by a Korean bank. By June 2018, Woori Bank had expanded its footprint into Cambodia by acquiring WB Finance, and in 2021, it upgraded its Cambodian oper- ations to a commercial bank, solidifying its position as a regional financial leader. In November 2018, the es- tablishment of Woori Bank Europe GmbH in Germany then further broadened its operational base in Europe. Woori Bank has also enhanced its global partnerships, securing stable credit lines and leading financial sup- port initiatives for both overseas Korean companies and top-tier local entities. The bank fosters global trade through a variety of financial instruments, includ- ing purchased foreign exchange, banker’s usance L/C transactions, and payment guarantees, thus stimulat- ing international trade finance. In emerging markets, Woori Bank aggressively local- izes its retail offerings and targets premier local busi- nesses, whereas in developed markets, it leverages its inter-corporate network to bolster its competitive edge in sectors such as investment banking and foreign ex- change, thereby driving optimized asset growth. Digital Competitiveness Enhanced in Global Markets In key regions of Southeast Asia—such as Indonesia, Vietnam, and Cambodia, Woori Bank has continuously innovated its mobile banking solutions to align with local consumer trends and expanded its range of remote retail products and services. The bank has also devel- oped a variety of digital offerings tailored to local needs, increasing customer convenience through strategic partnerships with leading local fintech firms and intro- ducing services tightly integrated with daily life, such as electronic financial services and payment solutions. Solid Compliance and Internal Controls As local financial authorities' compliance requirements increase, we are broadening joint on-site inspections by collaborating with relevant headquarters depart- ments. We are bolstering internal controls and incident prevention through routine thematic inspections. Moreover, through collaboration with relevant depart- ments, we identify areas for improvement and review support measures, enhancing our global compliance capabilities. Additionally, we're committed to enhanc- ing professional expertise with external training pro- grams for compliance personnel. INTERNATIONAL TRADE BUSINESS Enhanced EXIM Finance Leveraging marketing initiatives aimed at bolstering sales activities, Woori Bank has been actively promot- ing its import and export finance services. Additionally, the bank strategically supported industries such as aerospace and defense through targeted marketing efforts and direct engagement with companies. Advancements in Digital FOREX Products and Services In 2023, Woori Bank significantly improved retail FOREX services through the Woori WON Global Bank- ing platform. We implemented on-site due diligence for initial EXIM transactions, formalized marketing ex- pansion, and enhanced internal controls with overseas remittance risk assessment scoring system. Woori Bank has actively expanded into internation- al markets since November 1968 when it became the first domestic commercial bank to establish an overseas branch in Tokyo. As of the end of 2023, it possesses a global network spanning 24 countries with a total of 469 branches. Currently, under the "2nd home" strategy, we will focus on developing the three major subsidiaries in the high-growth region of Southeast Asia by pursuing balanced growth in retail and corporate banking. This entails boosting retail competitiveness through localizing our customer base and organizational structure, alongside augmenting high-quality assets for financial stability. For international trade related businesses, due to chal- lenging market conditions in 2023, Woori Bank's ex- port and import transactions decreased by 7.7% year- over-year, amounting to $420.3 billion. Additionally, remittances increased by 9.5% to $316 billion, and for- eign exchange transactions surged by 67.2% to $3.3 billion. 420.3 316.0 3.3 YoY YoY 455.4 288.7 2.0 393.5 193.0 0.9 YoY△7.7% +9.5% +67.2% Import/Export Key FOREX Performance Results Remittance Currency Exchange (Unit: USD billion) (Unit: USD billion) (Unit: USD billion) 2023 2023 2023 2022 2022 2022 2021 2021 2021 Certifications and Awards The Banker’s 2023 Bank of the Year for South Korea This marks the tenth time Woori Bank has received this award since 2000, including three consecutive years from 2016 to 2018. Notably, in 2020, Woori Bank was the first bank in Korea to sweep awards in three categories—global, Asia, and Korea—ele- vating its international stature. 026 WOORI OVERVIEW ESG REPORT STRATEGY REPORT BUSINESS REVIEW FINANCIAL STATEMENT APPENDIX GLOBAL STRATEGIES FOR 2024 Network Expansion and Strategic Focus in Southeast Asia In 2024, Woori Bank is poised to implement tailored growth strategies in high-growth nations such as Indonesia, Vietnam, and Cambodia. In Indonesia, the bank aims to diversify its loan asset portfolio, establish a derivatives desk, and enhance corporate finance capabilities to achieve balanced growth between retail and corporate banking. In Vietnam, efforts will concentrate on improving retail credit competitiveness through innovative non-face-to- face processes and expanding the retail network, while localizing customer interactions and organi- zational practices to strengthen retail operations. In Cambodia, initiatives such as increasing deposits, fortifying delinquency management, and introduc- ing premium branches aim to enhance asset quality and overall health. With its 469 networks across 24 countries, Woori Bank is now planning to expand its global network by opening new networks in Poland and India in 2024. The new networks in Pune and Ahmedabad will further solidify business operations in India, while the Polish networks will cater to growing financial needs stemming from tighter bilateral partnerships, including K-Defense exports and collaborative re- construction projects in Ukraine. Strengthening Global CIB Business Focused on key CIB hubs such as Hong Kong and Singapore, our strategy involves expanding our high-quality asset portfolio through selective management of investment banking deals and en- hancing funding capabilities. The Bahrain branch will extend support to businesses entering Saudi Arabia, while the Dubai branch aims to strengthen its operations in the Middle East by boosting invest- ment banking assets in the region. In the Americas and Europe, our network of established branches and corporate partnerships will facilitate corporate lending and top-tier investment banking services. Additionally, the upcoming launch of a new branch in Poland in 2024 will cater to the financial needs of the battery and defense sectors. Leadership in Digital Initiatives and New Digital Ventures Simultaneously, the bank will enhance the digital platform capabilities of its top three Southeast Asian subsidiaries. It aims to establish the groundwork for attracting new customers through non-face-to- face channels, leveraging the electronic know your customer (eKYC) automated process, while also en- riching service offerings via open API partnerships. Expansion endeavors will further entail widening the customer base through increased QR code pay- ment-related sales activities. With the international payments market expanding, Woori Bank launched an overseas ATM withdrawal service in Thailand in December 2023. Initially linked to Korean won accounts, this service will extend to Indonesia, the Philippines, and Hong Kong in the first half of 2024, followed by 17 additional countries, including the U.S. and Japan, in the latter half of the year, aiming for a global reach of 21 countries by the end of 2024. Boosting Core Competencies in the EXIM, Global Investment EXIM - In 2024, Woori Bank will enhance its core competitiveness by promoting all-in-margin business for export-import inactive companies. The "New Growth Finance 2.0" strategy will target around 3,000 ex- port-import and newly established companies among its lending cus- tomers, including 406 with no previous transactions with the bank. The bank aims to expand its export-import business using the specialized "Export Enterprise Momentum Package," targeting 2,475 promising ex- port companies selected by the Financial Services Commission. Global Investment - Following the launch of its Global Investment WON Center in Gangnam in July 2023 and Gwanghwamun in March 2024, the bank aims to lead new capital transaction channels by inte- grating efforts with its IB Group, New Growth Headquarters, and affili- ated companies, providing specialized services for venture companies. Additionally, it will capitalize on capital market opportunities through aggressive collaborations with asset management firms, legal, and ac- counting entities. Overseas ATM service - With the growth of the overseas payment market, Woori Bank launched an overseas ATM withdrawal service in December 2023. Currently available in Thailand, the service will ex- pand to Indonesia, the Philippines, and Hong Kong in early 2024, and to 17 more countries, including the U.S. and Japan, in the latter half of 2024, making it accessible in 21 countries worldwide. Also, Woori Bank will improve currency exchange productivity at Incheon International Airport by aligning services with international travel routes, expanding non-face-to-face exchange capabilities, and increasing staff to better manage operating hours, thereby boosting its market share. 027 WOORI OVERVIEW ESG REPORT STRATEGY REPORT BUSINESS REVIEW FINANCIAL STATEMENT APPENDIX RISK MANAGEMENT In 2023, high interest rates persisted throughout the year following a rapid increase in interest rates. This led to an increase in defaults, particularly in vulnerable sectors struggling to withstand high interest rates. Consequently, financial authorities signaled additional capital regulations such as countercyclical capital buffers and stress buffers to strengthen the loss-absorbing capacity of financial institutions. As such, efficient capital allocation and management based on limited capital became even more crucial. Accordingly, Woori Financial Group proactively engaged by maintaining a robust group risk management system, diligently overseeing both stability and capital adequacy, and actively responding to and managing evolving regulatory reforms. 2023 ACHIEVEMENTS Woori Financial Group As uncertainties in the global and domestic markets persisted, the group adjusted its crisis level from level 1 to level 2 to maintain stable risk management. It continued to conduct the Group Crisis Response Committee meeting, with the Chief Risk Officers (CROs) of all financial subsidiaries participating, holding 16 meetings annually to sustain comprehen- sive control. It approved new loans prudently through analysis of vulnerable sectors and implemented proactive post-management. Particularly, to ensure thorough management of real estate portfolios, it introduced guidelines and adopted a five-tier classi- fication system for "sustainable businesses" across all business sites to prepare for potential defaults. Furthermore, the group prioritized the management of capital adequacy and liquidity. While enhancing the group's capital adequacy through controlled growth, the group improved its capital ratios by in- corporating the Basel III regulatory updates concern- ing market and operational risks. In response to deteriorating financial conditions, the group also increased the frequency of liquidity moni- toring, diversified funding sources, and strengthened interest rate risk management across the non-bank- ing subsidiaries. These measures enabled the Group to maintain industry-low non-performing loan (NPL) and delinquency ratios, ensuring stable operations. In accordance with the 『Act on the Structural Im- provement of the Financial Industry』, Woori Financial Group was designated as a systemically important financial institution and subsequently submitted a government-mandated Recovery Plan. To comply with the requirements from the Financial Supervisory Service (FSS), the group collaborated with related departments and subsidiaries to update the plan. In line with the Financial Supervisory Service's 『In- novative Measures for Internal Control in the Banking Sector』, the bank implemented various improve- ments in accident prevention. These measures included a complete overhaul of the leave-of-absence system and the establishment of comprehensive accident prevention guidelines. Additionally, to enhance practical internal control activities at business sites, the bank independently appointed 『Internal Control Specialists at the Gen- eral Manager Level』 under the jurisdiction of each business headquarters. A new 『Unethical Business Practice Score System』 for general managers was also introduced to increase vigilance at business sites. Woori Financial Group has completed a group-wide emissions metrics system to manage climate risks. The total emissions for 2022 were measured at 52.67 million tons from the subject exposure of KRW 226 trillion out of the Group’s total assets of KRW 480 trillion. Woori Bank In efforts to enhance capital adequacy, Woori Bank managed its risk-weighted assets (RWAs) and strengthened its risk management system. Additionally, the bank enhanced its credit risk calculation factors, resulting in a reduction of RWAs by approximately KRW 2.7 trillion in 2023, and thereby achieving a 25 basis-point improvement in the BIS capital ratio. RWA calculation was further optimized by adopting Basel III’s new methodology for market risk calculations. In par- ticular, the bank managed market sensitivities related to derivatives to enhance its responsiveness to significant market volatilities, such as sudden foreign exchange rate increases. With respect to credit risk management, the bank strategically managed industry portfolios, resulting in a 1.3%p year-on-year increase in the proportion of expansion-targeted sectors, while emphasizing high-quality assets. At the same time, the bank conducted thorough inspections of domestic and international commercial real estate (CRE) assets and implemented stress tests for overseas CRE to continuously identify and manage high-risk assets. 028 WOORI OVERVIEW ESG REPORT STRATEGY REPORT BUSINESS REVIEW FINANCIAL STATEMENT APPENDIX GROUP-WIDE RISK MANAGEMENT STRATEGIES Woori Financial Group has set its 2024 risk management strategy as 『Strengthening Risk Competitiveness and Establishing an Optimal Management System』 to effectively respond to internal and external uncertainties. To achieve this, the group has identified four strategic directions: ① Strengthening the group's crisis response capability, ② Responding to risk-related regulations, ③ Enhancing its portfolio management policies, and ④ Managing risk for sustainable growth. Strengthening the group's crisis response capability Firstly, to strengthen the group's crisis response capability, we will risk manage vulnerable sectors and actively restructure our prod- ucts. We will establish a real-time response system for each risk factor identified in stress tests and induce a soft landing through the systematic management of high-risk assets. Responding to risk-related regulations Secondly, in addressing regulatory risks, the group plans to establish appropriate growth and capital funding plans that take into account capital buffers. It will also systematically manage liquidity and interest rate risks in preparation for regulatory normalization and smoothly implement sector-specific regulatory requirements. Enhancing its portfolio management policies Thirdly, the Group will enhance its portfolio management policy to focus on high-quality assets, minimizing the impact on capital ratios while achieving qualitative growth in corporate finance in response to mid- to long-term asset portfolio shifts. Additionally, it is enhanc- ing its global operations’ risk management policy, adopting a differ- entiated approach to address the distinct needs of each country. Managing risk for sustainable growth Lastly, the group will focus on risk management for sustainable growth. To prepare for risks in new business areas, we will estab- lish a group-wide digital risk management system. For climate risk management, we will develop financed emission metrics and set the direction for portfolio management policies. Additionally, we will con- tinuously activate and enhance collaboration and exchange systems across the Group. Board of Directors CEO Risk Management Committee Risk Management Division Group Risk Management Council Risk Management Department Risk Model Validation Department Risk Management Governance The Group’s risk management organization comprises the holding com- pany and subsidiaries sharing authorities and functions. While each sub- sidiary independently operates risk management committees, the holding company’s risk management committee is the highest decision-making body for the Group-wide risk management policies. 029 WOORI OVERVIEW ESG REPORT STRATEGY REPORT BUSINESS REVIEW FINANCIAL STATEMENT APPENDIX RISK MANAGEMENT STRATEGIES FOR 2024 : WOORI BANK Woori Bank has set its 2024 risk management strategy centered around the following strategic directions : ① Enhance its crisis response capabilities for ongoing readiness, ② Proactive credit risk management, ③ Upgrade its risk management systems, ④ Strategically respond to changes in risk-related regulations and policies. Enhance its crisis response capabilities for ongoing readiness Firstly, the bank aims to enhance its crisis response capabilities for ongoing readiness. We will establish a pre-response system for each market factor based on the stress test, manage liquidity risk and interest rate risk at appropriate levels considering interest rate uncertainty, and refine the monitoring and management of high-risk assets for both the bank and its customers. Proactive credit risk management for each asset type Secondly, Woori Bank will implement proactive management of credit risks for each asset type. We will optimize operations and management tailored to each industry based on enhanced industry analysis, support qualitative growth of the corporate portfolio and proactively manage default risks, particularly among borrowers with weak repayment capacity. Upgrade its risk management systems Thirdly, the bank plans to upgrade its risk management systems. While advancing the risk management system at its global opera- tions, it will also establish a risk management system for new digital ventures. Reflecting the shifts that have already taken place in the financial landscape, the new credit scoring models will also heighten its screening capacity. Strategically respond to changes in risk-related regulations and policies Lastly, Woori Bank will strategically respond to changes in risk-relat- ed regulations and policies. It will manage its capital ratio, particularly RWAs, and stably adopt new Basel regulations, while also linking its climate risk management to the group’s climate change response system. Compliance Risk Management Woori Bank will enhance its compliance expertise to maintain the bank's integrity through the following four measures. Firstly, the bank will enhance its system-based inspection methods. In the headquarters, we will analyze risk factors in the IB, derivatives, and fund settlement sectors and add them to the inspection items. For branches, we will conduct inspections reflecting risky transaction scores and composite rules. Additionally, we will systematically manage by enhancing the custom- er risk assessment model in the anti-money laundering department and expanding the scope of KYC sample inspections. Secondly, to bolster compliance monitoring capabilities, Woori Bank will enhance internal control-related education. We will conduct timely internal control education programs tailored to specific targets, provide internal con- trol training for branch control managers by business unit, and collaborate with external organizations to establish a new AML expert course aimed at cultivating professional expertise. Thirdly, in order to shift employee perceptions and encourage integrity in sales practices, a new merit scheme will be introduced for branches demonstrating outstanding internal control performance. Lastly, in accordance with regulatory guidance, we will establish a 「Respon- sibilities Map」 and develop a system to efficiently support the implementa- tion of internal control responsibilities. 030 WOORI OVERVIEW ESG REPORT STRATEGY REPORT BUSINESS REVIEW FINANCIAL STATEMENT APPENDIX 04 BUSINESS REPORT Group Business Portfolio Woori Bank Woori Card Woori Financial Capital Woori Investment Bank Woori Asset Trust Woori Savings Bank Woori F&I Woori Asset Management Woori Venture Partners Woori Private Equity Asset Management Woori Credit Information Woori Fund Service Woori FIS Woori Finance Research Institute 032 033 042 044 045 046 047 048 049 050 051 052 053 054 055 031 WOORI OVERVIEW ESG REPORT STRATEGY REPORT BUSINESS REVIEW FINANCIAL STATEMENT APPENDIX 032 WOORI OVERVIEW ESG REPORT STRATEGY REPORT BUSINESS REVIEW FINANCIAL STATEMENT APPENDIX GROUP BUSINESS PORTFOLIO Since transitioning to a financial holding company in 2019, Woori Financial Group has consistently aimed to increase the proportion of non-banking sector revenue in its business portfolio through subsidiary acquisitions and establishments. From 2019 to 2022, the Group acquired asset management, real estate trust, capital, and savings bank businesses, and established an NPL investment company. In March 2023, the Group acquired Woori Venture Partners (formerly Daol Investment), a top-tier venture capital firm, incorporating it as a subsidiary. In the second half of 2023, the Group completed the full acquisition of Woori Investment Bank and Woori Venture Partners, previously publicly listed companies, via a comprehensive stock-exchange agreement, thereby attaining complete ownership. This strategic move enhanced the efficiency of the Group’s portfolio, increased profits from controlling stakes, and strengthened group cohesion. Korea BTL Infrastructure Fund Woori America Bank Woori Bank (China) Limited PT Bank Woori Saudara Indonesia 1906, Tbk AO Woori Bank Banco Woori Bank do Brazil S.A. Woori Global Markets Asia Limited Woori Bank Vietnam Limited Woori Wealth Development Bank Coporation Woori Finance Myanmar Co.Ltd. Woori Bank (Cambodia) PLC Woori Bank Europe Gmbh 99.88% 100% 100% 84.20% 100% 100% 100% 100% 51.00% 100% 100% 100% 100% 92.73% 0.47% 100% 19.61% 33.33% 6.05% 1) 9.09% 2) 5.00% TUTU Finance-WCI Myanmar Co., Ltd WFBS Financial Stability Private Equity Fund No.1 Arden Woori Apparel 1st Private Equity Fund Woori Venure Partners US, Inc. Woori-Dino No.1 PEF KTB NHN China Private Equity Fund Green ESG Growth No.1 Private Equity Fund Woori Financial Stability Private Equity Fund No.1 KTBN GI Private Equity Fund 1)30.26%(including shares held by Group Companies) 2)36.36%(including shares held by Group Companies) First-level Subsidiary Second-level Subsidiary 14 22 Woori Fund Services 100% Woori FIS 100% Woori Finance Research Institute 100% Woori Asset Trust 96.75% Woori Investment Bank 100% Woori Financial F&I 100% Woori Asset Management 100% Woori Venture Partners 100% Woori Private Equity Asset Management 100% Woori Credit Information 100% Woori Financial Capital 100% Woori Bank 100% Woori Savings Bank 100% Woori Card 100% 84.51% Woori Finance Indonesia Tbk (As of Mar. 2024) 033 WOORI OVERVIEW ESG REPORT STRATEGY REPORT BUSINESS REVIEW FINANCIAL STATEMENT APPENDIX WOORI BANK Founded in 1899, Woori Bank utilizes its extensive domestic and international network, along with its digital platform, to drive its operations. Our strategic focus includes enhancing core business competitiveness, securing future growth, managing risks proactively, boosting digital and IT capabilities, improving management efficiency, and strengthening social responsibility. At Woori Bank, customer satisfaction is our highest priority. We are dedicated to implementing customer-centric practices and delivering innovative financial services that seamlessly integrate into all aspects of our customers' lives. Looking ahead, we remain committed to adapting to the evolving market landscape and fostering mutual growth. www.wooribank.com 24,949 132.2 137.1 24,533 124.7 135.0 24,145 113.6 139.9 YoY +1.7% YoY +6.0% YoY +1.6% No. of Retail Banking Customers Total Retail Banking Deposits Total Retail Banking Loans (Unit: 1,000 persons) (Unit: KRW trillion) (Unit: KRW trillion) 2023 2023 2023 2022 2022 2022 2021 2021 2021 RETAIL BANKING 2023 ACHIEVEMENTS In 2023, Woori Bank strengthened the competitiveness of its core products and services, including deposits and loans, resulting in a significant surge in its retail customer base. By the end of December 2023, the retail customer count had soared to 24.9 million individuals, marking a noteworthy increase of 4.2 million since the end of 2022. Moreover, the number of active customers rose to 10.1 million, reflecting an uptick of around 6 thousand customers from the previous year. Additionally, the bank successfully implemented a cus- tomer behavior-based marketing system to refine customer management and employed advanced marketing tools for specialized sales support. Furthermore, by introducing com- petitive strategic products in deposits and loans, the bank achieved considerable expansion in its customer base. Woori Bank made significant strides in enhancing its digital infrastructure to align with the increasing focus on digital channels. This was evident in the surge of monthly active users (MAU) for the 'WON Banking' Application, reaching around 8.2 million by December 2023, reflecting a rise of around 862 thousand users compared to the previous year. Simultaneously, the bank initiated a development project for the ‘New WON Bank' application, scheduled for launch in 2024, and has commenced a thorough overhaul of its cus- tomer interaction platforms. PLAN FOR 2024 In 2024, Woori Bank established plans to secure sustainable growth in its retail customer base. Following consultation on medium to long-term strategies, Woori Bank introduced two new metrics focusing on 'Future Customers' and 'Core Customers'. These indicators are poised to play pivotal roles in facilitating Woori Bank's pursuit of sustainable growth. The 'future customers' segment refers to prospective customers ranging in age from infants to college students, identified as having high potential for future financial transactions. In contrast, core cus- tomers are distinguished by their potential for low-cost deposits and high revenue contribution. This latter segment will be meticu- lously categorized into salary workers, seniors, and deposit holders, ensuring targeted and effective management. To enhance its customer base, Woori Bank has launched tailored marketing initiatives and customer engagement activities target- ing the conversion of salaried workers and senior individuals into primary transaction customers. Additionally, the bank has formed a dedicated unit for future customer promotion, tasked with identify- ing new business prospects and implementing focused marketing tactics spanning various potential customer segments, from infants to the unemployed population. These strategic efforts resulted in a net increase of 167 thousand future customers and 290 thousand core customers in the first quarter of 2024. Furthermore, the bank is committed to transcending traditional financial boundaries by engaging in cultural content marketing initiatives such as e-sports sponsorships and invigorating part- nership businesses. These efforts aim to secure retail customers not only through financial avenues but also through non-financial means. Retail Customers 2022 2023 YoY Total 24,533 24,949 +1.7% Core 5,104 5,387 +5.5% (thousand persons) 034 WOORI OVERVIEW ESG REPORT STRATEGY REPORT BUSINESS REVIEW FINANCIAL STATEMENT APPENDIX CIB CORPORATE 2023 ACHIEVEMENTS In 2023, Woori Bank continued to broaden its corporate banking operations, tapping into the established network of its large corporate clients to reach their employees, supply chains, and overseas branches. The bank also fo- cused on initiatives such as digitizing its corporate finance operations and forming cross-industry alliances to contin- ually expand its corporate client base. Guided by its 2023 business strategy, which was aimed at restoring its market leadership in corporate and invest- ment banking (CIB), the bank preemptively catered to the funding needs of corporations, achieving substantial results both quantitatively and qualitatively. As of the end of the year, its total balance of deposits and loans grew by KRW 19.8 trillion, or 14.6%, over the previous year to reach KRW 155.0 trillion, with net operating profit reaching a re- cord high of KRW 988.3 billion, topping its previous year’s record by an astounding 5.9% YoY growth. PLAN FOR 2024 In 2024, Woori Bank’s CIB Group aims to generate tan- gible results that befit its reputation as a leader in corpo- rate finance. As such, it will dramatically increase its total deposits and loans and enhance revenue by providing financial products and services that meet market and customer needs. To achieve this goal, it will first expand credit support for high-quality corporations to assist in their growth and serve as a cornerstone for the development of the Korean economy. Second, it will deliver products catering to customer needs in areas such as CIB, foreign exchange and derivatives, electronic finance, and retirement pensions, practicing a customer-first approach in all its business activities. Third, it will tap into the captive network of large corpo- rate clients through its Total Marketing strategy, providing diverse financial solutions not only to large corporate em- ployees but also cooperating SMEs. Finally, it will contribute to the spread of corporate ESG practices, as environmental, social, and governance (ESG) management has now become an essential element of business operations. Woori Bank will support the ESG ini- tiatives of large corporations by entering into ESG agree- ments and providing tailored products. Through these measures, the bank will fulfill its social responsibilities and continually create win-win growth for both the bank and customers alike. INSTITUTIONAL BANKING 2023 ACHIEVEMENTS Woori Bank is actively expanding its transactions with governmental agencies, local governments, and major public institutions. It has positioned itself as a financial institution that collaborates with local residents through a diverse range of social contribution projects aimed at de- veloping the communities where it operates. Since March 2018, it has served as the primary bank for the National Pension Service Fund (NPSF), one of the world’s top three pension funds, managing assets totaling KRW 1,036 trillion. In 2022, Woori Bank successfully renewed its con- tract as the primary bank for the NPSF. By 2023, Woori Bank was also providing institutional banking services as the primary bank for 105 out of 347 public institutions designated by the Ministry of Economy and Finance. As of 2024, key clients included the Ministry of Land, Infrastructure and Transport, Korea Post Service, NPSF, Korea Land & Housing Corporation, Korea Railroad Corporation, and Korea Exchange. The bank also serves as the treasury bank for 14 district offices in Seoul. As of FY2023, Woori Bank was handling a total volume of de- posit and loan transactions amounting to KRW 27.4 trillion, with over 5,000 institutional clients. Woori Bank operates a specialized team of system opera- tions experts within its Institutional Department, delivering top-tier financial solutions for governmental and public in- stitutions' policies and projects. In 2023, the bank support- ed several key government initiatives, such as the Ministry of Employment and Labor’s jobseeker allowances program, and served as the integrated EZ Baro bank for the National Research Foundation of Korea. Leveraging its advanced cash management systems, Woori Bank also secured MOUs with several institutions, including Sports Toto and the SME Corporate Pension Fund, once again demonstrat- ing its effectiveness as a specialized institutional bank. Since its inception as a national bank in 1915, Woori Bank’s Institutional Banking Group has evolved into the premier local government bank in Korea. Beyond basic budget management, it partners in significant regional development projects. The bank is unique in its expertise of fund management systems, which has created a high entry barrier for the treasury banking business for insti- tutions in Korea. In 2022, despite competitive bids for the Seoul Metropolitan government’s treasury, Woori Bank successfully retained the treasury services for Seoul’s 14 district offices, reaffirming its unparalleled market position as a bank that operates a world-class treasury manage- ment computer system. 155,042 988 135,221 933 130,521 641 YoY+14.6% YoY+5.9% Total Deposits/Loans Net Operating Profit (Unit: KRW billion) (Unit: KRW billion) 2023 2023 2022 2022 2021 2021 Corporate Deposits/Loans and Net Operating Profit 035 WOORI OVERVIEW ESG REPORT STRATEGY REPORT BUSINESS REVIEW FINANCIAL STATEMENT APPENDIX PLAN FOR 2024 Although 2023 saw increased profitability for Woori Bank due to rising interest rates and a growth in interest-earn- ing assets, 2024 is projected to see a slight dip in profit- ability as a result of sluggish economic recovery and fall- ing interest rates. In response, Woori Bank is prepared to maintain a balance between optimal liquidity provisioning and stringent risk management for institutions and local governments. As the bank with the greatest number of in- stitutional clients in Korea, Woori Bank is set to strengthen its digital and non-face-to-face financial services, broad- ening its service offerings to enable more convenient transactions for employees of public institutions, which falls in step with ongoing digital transformations through- out the financial sector. Additionally, the bank is poised to enhance profitability through strategic actions that include leveraging its customer base for sales, capturing new business opportunities in government-led projects, pre- empting the digital institutional market, expanding institu- tional sales capabilities, and bolstering internal controls. INVESTMENT BANKING 2023 ACHIEVEMENTS Fortifying IB Market Dominance and Investments in Innovative Ventures (CIB Business Division) In 2023, Woori Bank’s Investment Banking (IB) division boosted its non-interest income by enhancing businesses related to M&A acquisitions, power and energy/infrastruc- ture projects, and real estate developments. Selective principal investments in high-quality assets also contrib- uted to this growth. Additionally, the IB Group expanded its global presence by establishing global IB centers in strategic regions. Despite challenging market conditions, our competitive edge in acquisition financing and equi- ty investments drove significant operating income and non-interest earnings. With the strategic establishment and operation of global IB desks in financial hubs—the Americas, Europe, and Asia—the bank also saw remarkable growth in global IB assets and profits. This enabled consistent leveraging Major Partners Major Local Government Partners Major Ministry/Public Institution Partners District Offices in Seoul Ministry of Land, Infrastructure and Transport, Korea Disease Control & Prevention Agency, Ko- rea Post, National Pension Service, National Health Insurance Service, Korea Housing Finance Corporation, Korea Land & Housing Corporation, Seoul Housing and Communities Corporation, Korea Electric Power Corporation, KOTRA, Korea Railroad Corporation, Korea Exchange, Korea Securities Depository, Korea Public Finance Information Service, Korea Workers’ Compensation & Welfare Service, Korea Transportation Safety Authority 14 of IB business opportunities across our global network, resulting in IB operational revenue exceeding KRW 340 billion in 2023. Furthermore, Woori Bank augmented its portfolio with su- perior investments through strategic collaborations with top-tier global asset management firms. The bank active- ly engaged in aircraft financing, overseas infrastructure, power & energy projects, and the expansion of structured finance offerings. Issuing floating rate notes (FRNs) via Woori Global Markets Asia Limited reinforced both short- term profitability and the pursuit of forward-looking in- vestments in prospective growth avenues. Woori Bank has also been at the forefront of fostering innovation-driven financial ecosystems and propelling the growth of pioneering enterprises. Since their indus- try-pioneering inception at the end of 2018, the Scale- Up Investment Team and Innovation Growth Investment Team have spearheaded investments in innovative growth companies, supporting the government’s initiative to create a financial ecosystem conducive to innovation growth. In fact, Woori Bank had executed a total of 103 di- rect investments in innovation growth companies through 12 rounds of public offerings by 2023. PLAN FOR 2024 Maximizing Group-Wide Synergies to Strengthen the IB Division In 2024, the IB division is poised for substantial growth. Serving as a pivotal business sector for achieving synergy within the group, it will maintain a steadfast focus on es- tablishing a lasting foundation for long-term profitability, with strategic objectives centered on efficient capital management and robust revenue base construction. This includes increasing high-quality loan assets, enhancing financial arrangement performance, and amplifying CIB collaboration efforts across group subsidiaries. Amid global capital market volatility, the IB division is com- mitted to maintaining meticulous risk management and robust internal control systems, laying the groundwork for sustainable growth. This involves strengthening collab- oration across Group companies, including investment banking, capital, asset management, and venture capital operations. Additionally, the IB Group is establishing a comprehensive G&CIB (global and corporate investment banking) collaboration framework with the bank’s corpo- rate & institutional banking division (corporate, SME, and global) to further enhance its CIB capabilities and foster synergies across the group. Total Assets of Investment Banking Operations in 2023 (Unit: KRW trillion) 15.0(56.6%) 11.5(43.4%) ● Balance Sheet Assets ● Off-Balance Sheet Assets 26.5 Total Assets 036 WOORI OVERVIEW ESG REPORT STRATEGY REPORT BUSINESS REVIEW FINANCIAL STATEMENT APPENDIX FINANCIAL MARKETS 2023 ACHIEVEMENTS Stable Liquidity Management In anticipation of the scheduled phase out of financial de- regulations, the Financial Markets Group proactively man- aged its funding and liquidity in 2023, aligning its liquidity ratios with domestic regulatory standards. The ratios include the loan-to-deposit ratio (LDR), integrated liquid- ity coverage ratio (LCR), foreign currency LCR, net stable funding ratio (NSFR), and foreign currency mid- to long- term funding ratio. Also, in response to the F/X market modernization policy, an electronic F/X trading platform, Woori WON FX, was launched, thus enhancing transac- tion stability with a real-time market rate auto-hedging system. In addition, our active IR efforts have successfully attract- ed premier investors, raising KRW 400 billion (5.14%) in subordinated bonds in May and KRW 300 billion (5.38%) in hybrid bonds in October, thereby heightening bank- wide operational stability. Capitalizing on the growing demand for environmentally conscious and socially responsible investments at home and abroad, Woori Bank issued sustainable bonds total- ing KRW 400 billion in won-denominated subordinated bonds and USD 600 million (equivalent to KRW 770 billion) in senior bonds. This issuance contributed to rais- ing the bank’s brand reputation and to saving on funding costs. Enhancing Foreign Exchange and Derivatives Business Competitiveness Woori Bank effectively adapted to evolving global market dynamics and expertly managed risks at an optimal level while reinforcing its derivatives trading operations. F/X Dealing Division Woori Bank proactively responded in an agile way through an in-depth analysis of domestic and international F/X market developments as it navigated all the fluctuations in global financial markets. Notably, the bank served as a market maker that leveraged its high market shares in the Seoul foreign exchange market in 2023, with USD/ KRW and CNY/KRW market shares standing at 6.9% and 14.3%, respectively. Woori Bank also launched an electronic F/X trading platform in line with the government policy to advance Korea’s F/X market structure. Derivatives Division Woori Bank has established a secure foundation for its derivatives trading operations by proactively responding to various market variables, including exchange rates, in- terest rate fluctuations, and liquidity trends. Also, the bank supports SME customers who may lack expertise in F/X risk management with tailored solutions through consult- ing services for SMEs on managing foreign exchange and interest rate risks. Securities Division Woori Bank enhanced the yield on bond investments through proactive portfolio management and efficient market responses while generating non-interest earnings by increasing investments in securities. Additionally, con- tinuous ESG bond investments and participation in policy funds contributed to enhancing the bank’s social brand image. PLAN FOR 2024 Proactive Liquidity Management and Stability Enhancement To address global financial market volatility, Woori Bank will maintain stable management of liquidity indicators, including LDR, LCR, and NSFR. The bank will also proac- tively manage liquidity to minimize funding volatility in the wake of the gradual phase-out of financial deregulation. By steadily increasing retail deposits, issuing marketable CDs, and securing committed lines, the bank aims to en- sure stable operation of bank-wide liquidity and enhance profitability through strengthened management of funding and investment portfolios. Furthermore, the bank will allo- cate bank-wide resources to prepare for the restructuring of the F/X market (opening the domestic F/X market to foreign investors and extending F/X market operating hours) to ensure a stable market position and enhance its competitiveness. LCR (Liquidity Coverage Ratio) 4Q23 3Q23 2Q23 LCR 162.8% 147.0% 125.8% 121.1% 1Q23 LCR(Foreign Currency) 101.3% 101.3% 100.8% 101.0% 037 WOORI OVERVIEW ESG REPORT STRATEGY REPORT BUSINESS REVIEW FINANCIAL STATEMENT APPENDIX ASSET MANAGEMENT WEALTH MANAGEMENT 2023 ACHIEVEMENTS Strengthening the Wealth Management Business Foundation In 2023, Woori Bank launched a specialized wealth management channel, ‘Two Chairs W’, and strategically deployed experienced PB branch managers to deliver top-tier wealth management (WM) services tailored to customer needs. By the end of December 2023, the number of PB clients (customers with a monthly average balance of at least KRW 100 million in deposits) reached 286,422. Woori Bank established a foundation for customer-centric portfolio management that can offer different types of asset portfolios according to each customer’s investment profile. Additionally, the bank developed an in-house investment product evaluation model (WISE) that can quantify the past performance and expected returns of investment products, ensuring stable product sourcing and management. In the trust division, the bank introduced products that are focused on stability through early redemption and low bar- riers, and supported by enhanced marketing efforts from headquarters. With its mutual fund operations, the bank strengthened its lineup of fixed income products to cater to the growing preference for risk-free investments amid global volatility. The bancassurance operations enhanced its fixed-rate pension insurance offerings with competitive interest rates, while the asset custody sector achieved new custody of KRW 13.8 trillion in 2023, driven by a strategy centered on low-risk, high-yield quality assets. Furthermore, Woori Bank conducts regular internal control training for WM professionals to establish responsible and ethical sales protocols. It has also expanded the selection of next-generation PBs and implemented systematic training programs based on job levels, thereby strength- ening its foundation for cultivating specialized talent. PLAN FOR 2024 Enhancing Competitiveness through the Unified Wealth Management Group In December 2023, the Investment Product Strategy Group was integrated into the Wealth Management (WM) Group to unify bank-wide WM operations and enhance market dominance. This integration is expected to create synergies by combining the core functions of WM strat- egy development with the product and portfolio strategy capabilities of the Investment Product Strategy Group. This strategic move will position us as a leading WM-spe- cialized bank. To proactively respond to evolving customer needs, the bank will enhance services for ultra-high-net-worth in- dividuals while also strengthening services for existing affluent clients. This dual approach aims to boost our competitive edge and secure sustainable growth by expanding the PB client base, with a focus on delivering superior wealth management services. Woori Bank will actively adapt to market changes and establish portfolio-centric business strategies to enhance profitability through sustainable growth. By prioritizing customer-centric wealth management over sales-driven approaches, the bank will expand portfolio management and reinforce comprehensive sales processes to protect investors, thus establishing ourselves as a trusted wealth management specialist bank. TRUST & PENSION 2023 ACHIEVEMENTS Under the strategic goal of reinforcing its core compe- tencies in the trust business, Woori Bank’s Trust De- partment heightened its product competitiveness in 2023. Amid growing market volatility, the department focused on marketing stability-oriented products, such as exchange-linked trusts (ELTs) and exchange-traded funds (ETFs). It also expanded its lineup of fixed-income products to cater to the varied needs of customers. This customer-centric investment approach has effectively boosted customer yields and profits. As the trust business in Korea evolves from traditional financial product sales to a burgeoning trust management sector, Woori Bank has ramped up its marketing campaign for its proprietary brand, ‘Woori Show Your Love Trust Services’. This campaign has significantly strengthened brand recognition and set the stage for providing compre- hensive total care service for client assets. PLAN FOR 2024 In 2024, the Trust Department is determined to lead the market by continuously adapting to the evolving finan- cial landscape and meeting clients’ asset management needs. In step with the rising sale of money market trust products, which bolster the bank’s non-interest income, Woori Bank plans to enrich its customer-centric portfolio management strategies. This will involve introducing new products and diversifying product lineups to stay aligned with current market conditions, ensuring its role as a lead- er in prudent asset management. In addition, Woori Bank acknowledges that trust ser- vices are not merely about asset accumulation but are integral to wealth management and intergenerational wealth transfer. To better serve these needs, the bank will enhance its comprehensive property trust contracts and services. By fostering long-term partnerships with its clients, Woori Bank aims to deliver stable and integrated financial services, leveraging trusts as a key component of its offerings. 038 WOORI OVERVIEW ESG REPORT STRATEGY REPORT BUSINESS REVIEW FINANCIAL STATEMENT APPENDIX SME BANKING 2023 ACHIEVEMENTS As of the end of 2023, Woori Bank managed loans total- ing KRW 125.2 trillion and deposits of KRW 77.6 trillion for nearly 1.99 million SME customers. Total assets grew by KRW 7.1 trillion, with a prime asset ratio of 84.4% through a proactive reduction of KRW 1.4 trillion in potential non-performing assets and the expansion of prime SME loans. Additionally, the bank disbursed KRW 30 trillion in new funds, 91% of which was directed towards prime SME borrowers. Its contribution to guarantee institutions increased by KRW 34.3 billion year on year to KRW 100 billion, with guaranteed loan assets rising by KRW 850 billion. Furthermore, Woori Bank committed KRW 2.6 tril- lion to support eco-friendly green finance and safety net finance initiatives. Expansion of Support for New Growth Sectors In order to strengthen its role in the financial market, Woori Bank expanded its financial support to new growth sectors in 2023 in pursuit of future growth drivers by identifying high-potential industries. As part of this effort, it established the New Growth 1 and 2 Corporate Banking Divisions as organizations dedicated to identifying new growth sec- tors and generating new opportunities for investment and finance to high-growth potential companies. The new di- visions pursued direct marketing by leveraging the Group’s network for private equity and venture capital firms. The launch of the Woori Growth Engine Loan increased finance to high-tech firms with low credit records. The bank was also the first Korean commercial bank to adopt an innovation growth intelligence system (IGS) that makes use of data from emerging businesses benefiting from policy finance, thereby enhancing branch-level targeted marketing efforts. Through these initiatives, the bank sup- plied KRW 7.9 trillion in new funding. Establishment of SME-tailored Channels In the latter half of 2023, Woori Bank launched special- ized SME channels within the Specialized Complexes for Advanced Strategic Industries, with the aim of fostering future growth drivers and heightening SME marketing capabilities. Also, new Business Prime Centers opened in the Banwol and Sihwa, Changwon and Noksan, and Namdong and Songdo regions, focusing on specialized marketing strategies for new corporate customers located in nearby industrial complexes. To hone their competi- tive edge, these centers were granted enhanced credit approval authority that was supported by dedicated loan review teams. They also offered expanded benefits, including preferential interest rates and fee reductions. During the second half of 2023, these centers collectively disbursed KRW 320.5 billion in new loans. Support for Establishing ESG Efforts at SMEs In 2023, Woori Bank commenced business consulting services for SMEs to aid them in establishing a sus- tainable business environment and ESG management systems. Specifically, the Woori ESG self-check service assisted SMEs to quickly diagnose their E (environment), S (social), and G (governance) grades and preparedness level online. Through partnerships with specialized con- sulting agencies, the bank also supported SMEs with their introduction to ESG management and strategy-building via the Woori ESG consulting service. By revamping the Woori ESG Practice Partner Company Win-Win Loan and launching a new product called the Woori ESG Practice Partner Company Mutual Growth Loan, the bank actively supported the government’s ESG and mutual growth pol- icies, while also fostering ESG management and mutual growth among large corporations and SMEs. Prime Asset Ratio (SMEs) No. of SOHO & SME Customers million 84.4 % 1.99 (As of the end of 2023) (As of the end of 2023) 125.2 118.1 110.5 YoY+6.0% Total SME Loans (Unit: KRW trillion) 2023 2022 2021 039 WOORI OVERVIEW ESG REPORT STRATEGY REPORT BUSINESS REVIEW FINANCIAL STATEMENT APPENDIX PLAN FOR 2024 Rebuilding Our Reputation as a Corporate Banking Powerhouse In 2024, Woori Bank is dedicated to rebuilding its reputa- tion as a corporate banking leader. To that end, the bank is strategically increasing its SME financing by focusing on new growth sector financing and setting SME-special- ized centers within industrial complexes. Continuing the marketing initiatives that it began in 2023, Woori Bank will extend its financial support particularly to robust SMEs across six core industries. The bank will provide compet- itive interest rates and adjust loan limits flexibly according to industry type, directing its financial resources primarily towards these six strategic sectors. In addition, Woori Bank will expand its presence by opening more Business Prime Centers—its specialized SME channel—in industrial complexes across regions that include Jeolla Province, Daegu City and North Gyeongsang Province, Ulsan City, as well as in the Seoul Metropolitan areas of Pangyo and the Seoul Digital Industrial Complex. These centers will launch the exclusive Woori CUBE Loan-X (Biz Prime), bolstering competitive support through advantageous interest and fee rates. Enhancing Marketing on ME Customers Woori Bank is strategically intensifying its marketing efforts aimed at ME customers to reinforce its position as a leading corporate banking powerhouse. The bank has established dedicated sales channels specifically for MEs in new growth sectors and is reorganizing its support divisions to optimize sales assistance. Additionally, Woori Bank will introduce new loan products and time deposits specifically tailored to the needs of MEs in these sectors. This initiative is designed to enhance the bank’s focus on MEs, offering customized financial solutions and consulting services to more effectively support prospective MEs. Leading the Supply Chain Market In 2023, Woori Bank successfully attracted 11,649 new member companies to its supply chain finance platform OneBizPlaza, which offers procurement management solutions for SMEs. The bank also initiated its WBP The Next project in 2023 to strengthen its electronic purchas- ing and financial services, focusing on user-centered system improvements. Today, it continues to expand its membership base by providing preferential interest rates through exclusive deposit products and establishing part- nerships with a wide range of associations and organiza- tions. Government Policies and Inclusive Finance In complete alignment with government’s inclusive fi- nance policies, Woori Bank is dedicated to fulfilling its social responsibilities by supporting financially under- served individuals. In February 2024, the bank completed a cashback program in which it returned KRW 170.6 billion in interest to 210,000 self-employed individual cus- tomers who had been paying an interest rate exceeding 4% during the rate hike period. Moving forward, the bank plans to continue this support with additional quarter- ly cashbacks throughout the year. Furthermore, Woori Bank’s SME Financial Cost Reduction Program is actively supporting interest rate reductions for SMEs that are experiencing distress yet maintaining normal operations, reinforcing our commitment to mutual growth finance. DIGITAL BANKING DIGITAL BANKING 2023 ACHIEVEMENTS Woori WON Banking Achieves 8.18 Million MAUs By the end of 2023, Woori WON Banking had reached 8.18 million monthly active users (MAUs). This achieve- ment represents an increase of 2.53 million, or 45%, from 5.65 million MAUs in April 2022, less than two years ear- lier. Efforts continue to make Woori Bank’s digital financial services more accessible and convenient for an increas- ing number of customers. A Leader in Digital Innovation Technologies In November 2023, Woori Bank became the first Korean bank to establish a customer data platform (CDP). This enabled the collection and analysis of customer behavior data across all channels, enabling the bank to provide more timely and cus- tomized services.Additionally, in September of the same year, a generative AI-based employee knowledge consultation service was launched. Leveraging the Group’s accumulated expertise, a high-quality financial language model trained on financial data was developed in-house, enhancing the bank’s competitiveness in financial AI. Furthermore, collaboration with external platforms for the testing of new technologies, such as NFTs and proactive responses to industry and policy changes, are ongoing. Expand the Platform Ecosystem through Strategic Partnerships Woori Bank is actively pursuing strategic alliances with different industry sectors to strengthen its financial and non-financial portfolio and broaden customer interaction points. In September 2023, through a partnership with a healthcare company we diversified our non-financial ser- vices by launching a healthcare service that can be easily accessible within the WON Banking APP. In the financial sector, the bank has expanded sales channels for public finance products through platform company links and established a new loan transfer service, enhancing con- sumer convenience and increasing the accessibility of the bank’s products and services. 040 WOORI OVERVIEW ESG REPORT STRATEGY REPORT BUSINESS REVIEW FINANCIAL STATEMENT APPENDIX PLAN FOR 2024 IT Operational System Enhanced To meet diverse business needs and enable rapid devel- opment, an agile operational system will be introduced. In addition, an integrated construction project for an IT development management system will be pursued as the scope of in-house development tasks is gradually ex- panded to maximize the effects of IT governance restruc- turing. An enhancement in IT capabilities and increased operational efficiency are anticipated to come about from these efforts. Strengthening Technological Competitive- ness and Synergies We will deploy dedicated staff for standard frameworks and cloud management to the construction of the New WON Banking project. The development of a smooth software development work environment will be facilitated through an open-source sharing portal, promoting col- laboration and knowledge sharing among developers. A flexible IT infrastructure will subsequently be established with the construction of a platform as a service (PaaS) and public-based hybrid cloud. Advanced IT Quality Management System To secure a global standard quality management system, Woori Financial Group will obtain certification for the inter- national standard regarding IT service management, the ISO 20000. This certification will internationally validate the Group’s provision of secure IT financial services, en- hancing the operational level of IT and improving external trust. PLAN FOR 2024 Bolstering Customer-Centric Platform Com- petitiveness To strengthen non-financial services, the bank is ex- panding strategic alliances with companies from diverse industries, such as mobility, real estate, cloud-based en- terprise business, education, and distribution. Plans are also in place to continuously discover new business op- portunities in order to provide new customer experiences, including expanding integrated electronic wallet services and participating in government projects that are digi- tizing public services. At the same time, efforts are being focused on digital capabilities such as data, AI, and UI/UX for the successful launch of New WON Banking and the implementation of universal banking. Securing Future Competitiveness through Technology Innovation and New Business Initiatives Since the establishment of the Group’s Customer Data Platform (CDP) in September last year, change manage- ment initiatives have been promoted to enable its active use across the bank, with the aim of providing customers with more optimized services. The platform will also con- tinue to be used to proactively identify and address cus- tomer pain points during financial product enrollment and transaction processes, thereby increasing customer sat- isfaction. Moreover, Woori Bank’s AI banker—a first in Ko- rea’s financial sector to use generative AI technology—en- ables natural consultations based on an understanding of financial operations and conversational contexts. Starting in April 2024, the AI banker will be linked with the WON Banking chatbot to initially offer suggestions for savings and deposit products, with plans to expand its operational coverage over time. Additionally, in response to regulatory innovations such as security token offerings (STOs) and a central bank digital currency (CBDC), proactive business models are being explored and active participation in the government-led MyData 2.0 initiative is being planned, which in turn will secure more future growth drivers for the Group in the process. IT SUPPORT 2023 ACHIEVEMENTS New Technology Framework and Group- Wide Cloud System 2023 was a historic milestone for Woori as it became the first in the banking sector in Korea to establish its own framework and a Group-wide joint cloud system. Through the standard framework, it achieved the internalization of technology and standardization of the development en- vironment. Simultaneously, the creation of the Group joint cloud platform heightened the utilization of IT information resources. Advancement in Quality Control and Strengthened Internal Controls To create a monitoring environment with no blind spots, the adoption of a global IT test model was actively pur- sued, thus securing an advanced quality management system. The IT internal control management system and business management were also reinforced to identify IT risks in advance and establish a stable operating environ- ment. 8,177,124 7,315,445 5,644,612 YoY+11.8% Woori WON Banking Monthly Active Users (MAUs) (Unit: persons) 2023 2022 2021 041 WOORI OVERVIEW ESG REPORT STRATEGY REPORT BUSINESS REVIEW FINANCIAL STATEMENT APPENDIX IT SECURITY 2023 ACHIEVEMENTS Cyberattacks are evolving with alarming levels of sophis- tication. The latest, notable developments have shifted from executable files like EXE, to sophisticated attacks us- ing non-executable document files essential for business activities, such as MS Office, HWP, and PDF. To combat these advanced threats, Woori Bank has deployed a document file malware detection system that employs multi-scanning technology to discern vulnerabilities in these files and actively detect new threats. This system is part of a multi-tiered defense strategy that includes primary antivirus protection, a secondary advanced per- sistent threat (APT) response system, and a tertiary docu- ment file malware detection system, all of which enhance the bank’s capabilities to counter malware attacks that bypass traditional security measures. Additionally, Woori Bank has implemented an external IT ven- dor monitoring system to reduce security risk factors at source. This system continuously monitors and analyzes various sys- tem logs to detect any potential violations of information secu- rity compliance by external IT vendors. By developing specific violation scenarios which consider both internal and external personnel characteristics, the bank has shifted from manual, reactive internal control systems to an automated, continuous internal control framework, thus bolstering its preventative measures against information security incidents. REAL ESTATE 2023 ACHIEVEMENTS In 2023, Woori Bank's Real Estate Finance Business Group marked a number of significant achievements, securing second place in the mortgage loan market share while sustaining its predominant top spot in the National Hous- ing and Urban Fund (NHUF) market share. In alignment with government initiatives to support policy finance, the bank contributed to stabilizing housing for lower-income families. Additionally, Woori Bank made contributions to the industry-wide cooperative financing initiative aimed at re- ducing the interest burden on home loan borrowers amidst a high-interest period. Recognized for its ability to offer a diverse array of real estate finance products, the bank was selected for the fourth consecutive time since 2008 as the treasury bank for the NHUF, acknowledging 15 years of continued excellence in service. In 2023, the Real Estate Finance Group also laid the foundation for the complete digitalization of its real estate financing. This initiative included the renewal of its flagship remote mortgage product, Woori WON Home Loan, and the enhancement of the electronic home registration pro- cess. Furthermore, the group launched the Real Estate Fi- nance Digital Center ACT, which centralized the operations of loan brokers and non-face-to-face mortgage operations. PLAN FOR 2024 For 2024, the Real Estate Finance Group is poised to en- hance its position as a leading bank in real estate finance, with its strategy focusing on administering hyper-personal- ized services to capture any market opportunities emerging from the deregulation of loan migrations. It also plans to augment the function of the Real Estate Digital Center ACT, PLAN FOR 2024 The rise in global cyber threats has highlighted the need for enhanced internal controls over information security at Woori Bank’s overseas branches. As such, the bank is set to establish an integrated security management system for its international entities to strengthen its response to cyber threats from around the world. This involves cen- tralizing the management of security operations centers (SOCs) that had previously been managed separately by each overseas subsidiary, enabling a unified approach against security threats from outside. Furthermore, to ensure consistent cybersecurity standards, entities with lower cybersecurity maturity will further strengthen their security systems to meet the high standards of cyberse- curity employed throughout Korea. At the same time, the increasing trade of financial infor- mation on the dark web has underscored the urgency of monitoring illegal transactions and protecting sensitive cor- porate data from exposure on black markets. Woori Bank plans to leverage dark web threat intelligence services to set up a comprehensive security monitoring system. This system will continuously monitor for any leaked information being traded on the dark web and other platforms, quickly respond to breaches of sensitive information such as cus- tomer account details, close the unnoticed loopholes, and block malware infections to minimize risk exposure. thereby strengthening its capacity to provide profession- al consulting services directly and more conveniently to customers. Moreover, the bank will continue to develop its specialized Real Estate Platform, which aims to offer a rich array of valuable real estate content to clients. In addition, as the treasury bank for the NHUF, Woori Bank holds exclusive rights to sell Urban Housing Regeneration Project package products, while at the same time promoting comprehensive marketing strategies for each project site. Through these differentiated operations, Woori Bank is dedicated to main- taining its top position in both NHUF market share and its status as a highly rated treasury bank. 042 WOORI OVERVIEW ESG REPORT STRATEGY REPORT BUSINESS REVIEW FINANCIAL STATEMENT APPENDIX 2023 ACHIEVEMENTS Woori Card's transaction volume has been steadily in- creasing due to the rise in memberships, collaboration with Woori Bank in affiliate marketing, and its proactive expansion into the digital payment sector. Simultaneously, the company is consistently expanding its financial as- sets, long-term credit card loans, through its high-quality customer portfolio. Furthermore, since 2016, it has been diversifying its revenue streams by venturing into install- ment payments, leasing, and credit loan services, further bolstering its long-term financial outlook. In 2023, total assets increased by approximately KRW 1.4 trillion YoY due to the expansion of revenue-generating financial assets. Despite deteriorating market conditions such as rising funding rates and declining asset quality, the company achieved a consolidated net income of KRW 111 billion through proactive risk management and cost-efficiency efforts. Woori Card is strengthening its competitiveness by pro- actively adapting to the evolving landscape, innovating products, fostering collaboration among Group subsidiar- ies, and elevating digital and global capabilities. In 2023, Woori Card fortified its grounds for growth and profitability by establishing its own payment network. The company laid the foundation for becoming a competitive credit card entity by employing hyper-personalized mar- keting strategies based on extensive big data customer analysis and enhancing its user-centric digital platform. Following the launch of Woori Finance Indonesia in 2022, the company further expanded its business footprint in the subsequent year through partnerships in the Indone- sian market, encompassing both retail and Fintech sec- tors, while also reinforcing its IT infrastructure to ensure heightened business and digital competitiveness. WOORI CARD Woori Card was established following its spin-off from Woori Bank in April 2013 to strengthen the Group’s credit card operations as well as the competitiveness of its non-bank sector. Woori Card has the extensive network and customer base of Woori Bank, and is now actively exploring new business opportunities in pursuit of growth. Maintaining customer value as the foremost priority throughout its business operations, the company consistently advances its product and service offerings to align with customer demands. Woori Card is broadening its market presence through distinctive product line expansions and synergistic collaborations with affiliated subsidiaries, while concurrently fortifying its digital and global competencies. www.wooricard.com 103,089.6 2,099.8 YoY 98,245.5 1,836.8 92,850.1 1,528.7 YoY+4.9% +14.3% Transaction Volume Operating Revenue (Unit: KRW billion) (Unit: KRW billion) 2023 2023 2022 2022 2021 2021 043 WOORI OVERVIEW ESG REPORT STRATEGY REPORT BUSINESS REVIEW FINANCIAL STATEMENT APPENDIX Woori Card Net Income Woori Card Transaction Volume Moreover, as a fore-runner in the Korean credit card in- dustry to embrace co-prosperity initiatives, Woori Card initiated and executed a KRW 220 billion co-prosperity financial support program. Additionally, it set industry standards for social contribution through credit finance, offering cashback programs and marketing support to all its SOHO clients. PLAN FOR 2024 In 2023, the Korean credit card industry witnessed a slowdown in growth and a notable decline in asset growth rates. This was attributed to factors such as reinforced management of household debt and high funding rates, resulting in elevated borrowing interest rates and credit cost ratios, ultimately negatively impacting profitability. As market uncertainties, including escalating funding rates, declining asset quality, and decelerating sales growth may persist in 2024, credit card companies are likely to experience some heightened pressure on prof- itability. In response, Woori Card intends to bolster its steadfast management framework, prioritizing proactive risk management and cost optimization strategies, to effectively navigate the unpredictable environment. Fur- thermore, the company plans to augment its foundational business competitiveness through the successful estab- lishment of an autonomous credit card enterprise, with the overarching objective of securing new avenues for growth. Additionally, the company plans to increase its business competitiveness by revitalizing its genuine product lines, strengthening its dominance in the corporate credit card market, automating processes enhancing cost efficiency, and improving its asset. We also aim to explore new glob- al markets and expand non-interest income, especially fee and commission income, to cultivate new future growth revenue models. Moreover, by refining credit rating models, we intend to proactively manage high-risk customer groups, such as multi-debtors and individual business operators, and enhance risk management capabilities in preparation for market uncertainties by expanding high-efficiency debt recovery operations and implementing preemptive recov- ery strategies. KRW KRW billion trillion 111.0 103.1 Certifications and Awards (As of the end of 2023) (As of the end of 2023) 2023 Promotion of Eco-Friendly Technology and Consumption Contribution Date: December 14, 2023 Organizer: Ministry of Environment, Korea Climate Environment Network 29th Korea Financial Innova- tion Awards – Service Innova- tion Award (Financial Products category) for the Consumer Finance Sector Date: October 23, 2023 Organizer: Money Today 13th Asia Today Financial Awards 2023 Date: September 22, 2023 Organizer: Asia Today 2023 Seoul Economy Best Banker Award Date: March 30, 2023 Organizer: Seoul Economic Daily, SEN Seoul Economic TV 2023 Korea National Brand Awards: Top NCI (Credit Card Category) Date: April 4, 2023 Organizer: DongA.com, Hankyung. com, iMBC 044 WOORI OVERVIEW ESG REPORT STRATEGY REPORT BUSINESS REVIEW FINANCIAL STATEMENT APPENDIX 2023 ACHIEVEMENTS Woori Financial Capital has significantly strengthened its core business not only by reinforcing networks with major partners but also forging new ties to other leading com- panies. At the same time, it has intensified its customer retention efforts, making concerted efforts to target cus- tomers upon their product maturity, while simultaneously expanding its loan portfolio. Additionally, Woori Financial Capital has driven the development of new growth en- gines through effective management of CVC funds and laying the groundwork for overseas business expansion. The company has also boosted its digital leadership by upgrading the digital processes in auto finance, es- tablishing a company-wide digital transformation (DT) framework, launching new digital business initiatives, and stabilizing the product lineup on its digital platform. More- over, the company has bolstered its robust management practices by creating specialized units tailored to each business function and enhancing proactive risk manage- ment systems. Overall, Woori Financial Capital has secured the neces- sary momentum for sustainable growth by heightening competitiveness across various business sectors and building a solid foundation for revenue generation through new business ventures. The company is also enhancing its digital system and platform, and advancing its capabil- ities in proactive risk management, positioning itself as a leader in both the financial and digital realms. PLAN FOR 2024 Under its corporate vision of “Surpassing greatness to reach the pinnacle,” Woori Financial Capital will emerge as the indus- try’s top capital firm by employing the following five strategies. First, the company will enhance core business competitive- ness by diversifying its corporate finance portfolio and building product capabilities targeted at SMEs, thereby laying founda- tions for expanding corporate credit business. This includes optimizing lending business architecture, enhancing the Woori WON Car platform, and strengthening alliance and sales channels to broaden its auto finance capabilities. Second, the company will dedicate securing future growth engines. As 2024 will serve as the inaugural year for leaping into the global markets, we plan to keenly touch upon “over- seas expansion and business diversification”. This strategy will include uncovering and leveraging future growth mo- mentum to ensure our competitive advantage and aggres- sively targeting growth industries. Third, the company plans to expand its creation of syn- ergies. This involves enhancing synergy effectiveness through business integration within the Group, establishing an integrated management system, and expanding the operation of strategic investment funds to foster synergies that permeate throughout the Group. Fourth, in an effort to accelerate digital innovation, the com- pany will enhance systems for data collection, analysis, and utilization, paving the way for new business ventures. It will also institute a comprehensive management system for customer channels and digital transformation tasks across the company. Lastly, Woori Financial Capital is committed to strengthen- ing solid management by enhancing its risk management and crisis response capabilities to better handle economic fluctuations, as well as advancing system-based internal controls and fostering a culture of proactive compliance. WOORI FINANCIAL CAPITAL Automotive finance holds significant importance within Korea’s specialized crdit finance sector. With evolving perceptions of car ownership and increasing competition within the auto finance market, the outlook suggests limited growth potential for this business area. In response, capital firms are diversifying their business models by venturing into personal and corporate finance, actively adapting to the growing prevalence of digital operations amid intensifying competition in the digital front. Woori Financial Capital is poised to lead the industry with its five business strategies— enhancing core business competitiveness, securing future growth engines, expanding synergies, accelerating digital transformation, and reinforcing robust management practices. www.woorifcapital.com Woori Financial Capital’s Financial Performance Woori Financial Capital’s Non-financial Highlights (Unit: KRW billion, %, %p, consolidated) 2021 2022 2023 YoY Change Total Assets 10,259 12,581 12,417 △1.3% Net Income 140.5 183.3 127.8 △30.3% NPL Ratio(%) 1.20 1.22 2.37 +1.15%p ROA(%) 1.69 1.51 0.83 △0.68%p ROE(%) 15.74 12.53 6.39 △6.14%p June 9, 2023 7th consecutive certification of Consum- er-Centric Management (CCM) by the Fair Trade Commission and Korea Consumer Agency June 28, 2023 Woori WON Car – Winner of a 2022 Kore- an Consumer Award (automobile category, 2nd straight year) Dec. 8, 2023 Induction to the Hall of Fame for CCM by the Korea Fair Trade Commission and Ko- rea Consumer Agency Donations •KRW 5.12 million to Hope Joyagdol (February 22, 2023) •KRW 1,175 million to Woori Financial Future Foundation (November 15, 2023) •KRW 176 million to Woori Multicultural Foundation (November 15, 2023) •KRW 588 million to Community Chest of Korea (December 8, 2023) Financial Support •Principal repayment deferrals through debt repayment deferment: 319 borrowers, deferring a total of KRW 34.5 billion in repayments in 2023 Certifications and Awards Social Contribution Activities 045 WOORI OVERVIEW ESG REPORT STRATEGY REPORT BUSINESS REVIEW FINANCIAL STATEMENT APPENDIX 2023 ACHIEVEMENTS Strengthening the Core Business In 2023, the company fortified its core business by bol- stering its corporate finance division and expanding its retail clientele, aiming to achieve significant growth and establish itself as a strong investment bank. This expansion included the creation of Corporate Fi- nance Division 2, an increase in staffing, and an enhance- ment of its debt capital market (DCM) operations. These initiatives led to a notable jump in total lending (including commercial papers), by KRW 980.9 billion, marking a 25.8% hike in DCM revenue. Additionally, the company enhanced its deposit-taking operations through the expansion of digital channel-centered products and ser- vices, which resulted in a KRW 365.2 billion increase in deposit volumes over the previous year. Capital Increase to Expand Growth Potential In December 2023, WIB undertook a significant capital increase of KRW 500 billion, elevating its equity to the level of a mid-sized securities firm. This enhancement bolstered its operational limits and ensured stability in regulatory ratios, thus honing its competitive edge in the capital markets. PLAN FOR 2024 Woori Investment Bank has formulated an aggressive growth strategy to secure its position as a key player in the capital markets within the group. Its strategy for 2024 re- volves around enhancing its investment banking compet- itiveness and expanding total corporate finance services. The four pillars include: First, Enhancing Corporate Finance Competencies: WIB intends to strengthen its relationship management (RM)-based sales and heighten its corporate finance ca- pabilities to serve as the Group’s primary deal provider. Second, Building a Balanced Business Portfolio: The company is set to bolster its retail operations and capabilities in managing fixed income, commercial paper management, and investment banking, aiming for a more balanced business portfolio. Third, Advancing Infrastructure for Business Expansion: In order to support its business expansion efforts most effectively, WIB will upgrade its IT and risk management infrastructures. Finally, Innovating Corporate Culture: WIB is committed to reform its corporate culture by re- forming its HR practices to be performance-based, and by enhancing its internal controls standards. Through these strategic initiatives, Woori Investment Bank is poised to become a leader in providing integrated financial services that meet the evolving needs of its clients and market. WOORI INVESTMENT BANK Woori Investment Bank (WIB) provides ‘One-Stop’ comprehensive financial services including investment banking and commercial banking services. The bank’s service includes deposit-taking(CMAs, etc.), corporate loans, structured financing, and securities investments. In 2023, the company strengthened its core businesses, including its investment banking operations, while strengthening its digital customer base, aligning its management goal of becoming a "Competitive Investment Bank via Solid Growth". For 2024, the company plans to increase its competitiveness in the capital markets, broaden its investment banking operations, and reinforce Group synergies to boost performance. www.wooriib.com 6,484.3 4,296.0 5,503.5 3,928.3 4,956.9 3,366.4 Total Loan Balance (including bills sold) Deposit Balance (including CP deposits, CMA trust funds) (Unit: KRW billion) (Unit: KRW billion) 2023 2023 2022 2022 2021 2021 YoY+17.8% YoY+9.4% 046 WOORI OVERVIEW ESG REPORT STRATEGY REPORT BUSINESS REVIEW FINANCIAL STATEMENT APPENDIX 2023 ACHIEVEMENTS Despite a downturn in the real estate market and heightened risks in ongoing projects, 2023 beat expectations. Trust deposits of KRW 58 trillion and an operating profit of KRW 44.8 billion positioned the company to be in the mid to leading performer in the industry. Based on its sound financial status, Woori Asset Trust’s credit rating improved from A-/Positive to A/Stable. In terms of operations, secured trust products in collaboration with the Group has expanded, no- tably through the introduction of the Woori CUBE Loan-X, the first product of its kind designed to create Group synergies. The business base has broadened by securing more projects related to policy led youth housing rental REITs near the subway areas and small-scale urban redevelop- ment projects in metropolitan areas. In order to curtail risks stemming from the ongoing real estate market crises, the company’s risk management frameworks and internal controls were bolstered. Task force teams continue to manage project sites with land trust issues as the company monitors real estate trends to monitor potential risks. IT system upgrades and strengthened internal controls have also contributed to significant business process improvements. As a result of these efforts, trust assets and operating revenue have shown a three-year com- pound annual growth rate (CAGR) exceeding 10%, with ROE and ROA at the top end of the in- dustry, at 13.3% and 9.8%, respectively. PLAN FOR 2024 The focus for 2024 is on strengthening the foundation for sustainable growth through differentiat- ed sales capabilities and solid management, with the following five strategic tasks set to be carried out: Enhanced Revenue-Generating Capacity All business divisions are committed to generating new revenue sources, with a particular focus on non-land trust segments that are more viable for orders and revenue generation under current market conditions. Portfolio Diversification The business base for debt-based and hybrid land trusts will be strengthened, while the scope of urban redevelopment projects will be broadened to diversify revenue sources through portfolio restructuring. Expanded Group Synergies Joint sales promotions will continue, further solidifying the foundation to bring about greater Group synergies through branch training and marketing. Proactive Risk Management Company-wide risk management capabilities will be enhanced by establishing a new orga- nization dedicated to managing project sites with land trust issues and maintaining ongoing dedicated task force teams. Corporate Culture Innovation A more progressive culture of openness and communication will be fostered, enhancing objectivity and fairness in the HR department and advancing internal controls to establish a zero-accident organizational culture. WOORI ASSET TRUST In 2023, amidst challenging market conditions, Woori Asset Trust was able to achieve sound financial performance, including stable revenue and enhanced credit rating. This was possible via expanding its business in REITs, securing policy led urbanization projects, and launching new collateralized trust products in collaboration with the Group. www.wooriat.com ROE(%) ROA(%) NCR(%) Net Income Woori Asset Trust 13.3 9.8 1,284.0 32,297 Hana Asset Trust 15.9 13.9 847.0 80,914 Shinhan Asset Trust 15.2 11.9 927.0 53,430 Shinyoung Real Estate Trust 12.3 10.3 1,229.0 12,073 Korea Investment Real Estate Trust 9.9 7.6 1,324.0 21,152 Korea Asset Investment Trust 9.4 7.8 370.0 78,865 Korea Trust 8.4 6.5 877.0 16,970 Daeshin Asset Trust 8.2 6.2 851.0 13,206 Daehan Real Estate Trust 3.9 2.3 894.0 14,895 Korea Real Estate Investment and Trust 2.9 1.6 306.0 25,247 Mugunghwa Trust 1.5 0.9 379.0 3,992 KORAMCO REITs and Trust 0.7 0.5 543.0 3,129 Kyobo Asset Trust △7.3 △6.1 1,306.0 △29,497 KB Real Estate Trust △24.3 △12.2 518.0 △84,073 Woori Asset Trust Financial Highlights Key Financial Indicators by Trust Company (Unit:KRW billion) (Unit: %, KRW million) 2021 2022 2023 YoY Change CAGR (2021-2023) Trust Deposits 44,492 51,419 58,074 +6,654 (+12.9%) 14.2% Operating Revenue 94.2 137.1 130.0 △7.1 (△5.2%) 17.5% Total Equity 168.4 227.5 258.2 +30.7 (+13.5%) 23.8% Note) Data from the Korea Financial Investment Association e-Disclosure Service (As of Dec. 31, 2023, based on 14 trust compa- nies) 047 WOORI OVERVIEW ESG REPORT STRATEGY REPORT BUSINESS REVIEW FINANCIAL STATEMENT APPENDIX 2023 ACHIEVEMENTS Despite economic challenges stemming from uncertain- ties in the financial market, the bank managed to expand its total loans by KRW 240.8 billion compared to the pre- vious year. This growth was achieved through strategic portfolio restructuring and targeted marketing efforts, specifically focusing on prime loans. As a result of this strategy, the bank saw a year-on-year increase in loan interest income of KRW 20 billion. In an effort to improve the company’s financial health, WSB enhanced its credit scoring system (CSS) for retail credit loans while carefully managing the loan balance. In fulfilling its social roles as a financial institution, the bank disbursed KRW 424.9 billion in policy related finance products to help the financially marginalized groups. As a result, its inclusive finance balance grew by KRW 149.0 billion year over year. in recognition of these accom- plishments, the bank received a commendation from the Chairman of the Financial Services Commission in the inclusive finance category. Due to the ongoing slowdown in the real estate market, WSB reduced its exposure to project financing (PF) and bridge loans, focusing instead on securing safer assets through selective marketing on prime corporate borrowers. Additionally, WSB strengthened its proactive risk management, including enhancing its retail credit rat- ing models and more effectively managing potential non-performing loans (NPLs). This effort, combined with vigorous recovery initiatives and bad debt write-offs, re- sulted in a year-end delinquency rate of 3.24% (industry average: 6.55%) and an NPL ratio of 3.53% (industry average: 7.72%), thus maintaining its asset stability well above the industry average. WSB also accelerated its digital transformation to height- en its competitiveness and augment all future growth potentials. This includes implementing digital bank booths and expanding robotic process automation (RPA) to increase efficiency, alongside building an integrated infor- mation system for digital financial services. PLAN FOR 2024 Amid regulatory and economic challenges, as well as intensified competition in non-face-to-face channels, WSB plans to enhance its core business competitiveness, strengthen its inclusive finance framework, and pursue sustainable growth. To strengthen its crisis management capabilities, the bank will introduce a behavioral scoring model (BSS) and a debt collection model. By developing a sophisticated risk management system, it aims to establish a foundation for qualitative growth. Moreover, it will continue to expand its social roles while focus improving its earnings through selectively growing assets centered on risk management. At the same time, it will pursue a risk-based portfolio management strategy to reduce high-risk assets. Finally, to strengthen its digital competitiveness, it will fo- cus on enhancing IT operations management, infrastruc- ture, and process innovation. WOORI SAVINGS BANK As a financial institution catering to the retail and small to-medium-sized enterprises, Woori Savings Bank focuses on enhancing financial convenience and boosting savings through its core services such as deposits and loans. The bank joined Woori Financial Group in March 2021. Since then, it has been striving to solidify its position as a leading savings bank in Korea, actively responding to market changes, and achieving sound internal growth through robust risk management and balanced portfolio. www.woorisavingsbank.com Certifications and Awards Oct. 2023 Financial Services Commission Chairman’s commendation for exemplary practices of inclusive finance Woori Savings Bank Financial Highlights 2021 2022 2023 YoY Change Total Assets (consolidated) 1,444.5 1,786.5 1,938.9 8.5% Total Loans (consolidated) 1,255.1 1,472.5 1,710.9 16.2% 1,938.9 1,786.5 1,444.5 Total Assets (consolidated) (Unit: KRW billion) 2023 2022 2021 YoY+152.4billion (Unit: KRW billion, %) 048 WOORI OVERVIEW ESG REPORT STRATEGY REPORT BUSINESS REVIEW FINANCIAL STATEMENT APPENDIX 2023 ACHIEVEMENTS Woori Financial F&I’s total investments in 2023 reached KRW 701.9 billion and were distributed across several sectors: KRW 612.9 billion in commercial banks’ NPLs, KRW 22.6 billion in private contracts from non-bank financial institutions, KRW 57.0 billion in LP investments through funds, and KRW 9.5 billion in unsecured NPLs from savings banks. The company initiated its first corporate restructuring (CR) investment to diversify its investment avenues. Additionally, it was the first company in the industry to secure limited partnership status for a private equity fund, creating a solid foundation for invest- ment discovery. The company also completed its registration with the Financial Supervisory Service as an asset manager and has been actively hiring experts to further internalize asset management since then. To secure stable investment funding, Woori Financial F&I raised a total of KRW 470 billion in 2023. This included man- aging a total of KRW 175.0 billion, with a controlled limit to offset the potential for idle funds, maximize flexibility in funding, and minimize funding costs. In its commitment to ESG management, the company regular- ly conducts social contribution activities, supporting financial and asset-building capabilities for youth that are preparing for their independence. This support is carried out in collabo- ration with local governments and welfare organizations, and includes partial funding for housing deposits and educational programs on real estate contracts. Internally, the company is dedicated to enhancing its corporate culture through im- provements to its evaluation and compensation systems, expanded employee communication programs, introduction of employee-friendly programs, and the strengthening of its internal control systems. PLAN FOR 2024 Woori Financial F&I has set forth its 2024 management goals as “Level-Up Core Business Competitiveness” and “Strength- en Organizational Structure,” aiming to continually heighten its market competitiveness. The company plans to bolster its market position by expanding participation in public tenders and discovering high-yield investment opportunities like NPL negotiated contracts and CR in the non-bank financial sector, while also enhancing Group synergies through joint invest- ments with subsidiaries. It will also focus on maximizing profit- ability by establishing specialized organizational units, contin- uously recruiting experts, and developing internal guidelines for efficient asset management. Moreover, the company plans to conduct a feasibility study of new IT system developments to support continued growth, secure specialized personnel, and operate training programs to reinforce its internal organizational structure. Externally, Woori Financial F&I will intensify its ESG management activi- ties by fostering continuous engagement in social contribution activities and encouraging employee participation. Finally, to proactively respond to changes in the business en- vironment, Woori Financial F&I is set to enhance self-checks and employee training, establish a comprehensive IT internal control system, and fortify its risk management framework by standardizing risk indicator assessments and reporting proce- dures. Woori Financial F&I was established in January 2022 as a specialized investment company for NPLs (Non-Performing Loans) and CR(Corporate Restructuring), with the aim of enhancing the Group’s non-banking business portfolio and capitalizing on the NPL market, which is highly expected to grow significantly in the future. In 2023, its second year of operations, Woori Financial F&I has solidified its presence in the market, expanding investments by over 1.8 times year-over-year, attributed to a stable financial structure and synergy with the group. Looking ahead to 2024, Woori Financial F&I aims to enhance market share through increased investment and portfolio diversification, while also strengthening our organizational structure, expanding ESG management, and driving corporate culture innovation to lead the industry. www.woorifni.co.kr WOORI FINANCIAL F&I Credit Rating Total Investment Assets (As of the end of 2023) (As of the end of 2023) Korea Investors Service, Issuer Credit Rating A-stable KRW701.9billion 049 WOORI OVERVIEW ESG REPORT STRATEGY REPORT BUSINESS REVIEW FINANCIAL STATEMENT APPENDIX 2023 ACHIEVEMENTS As of the end of December 2023, and following its merger with Woori Global Asset Management, WAM’s total net asset value (NAV) surged by KRW 12,447.7 billion, or 40.5%, year on year, reaching KRW 43,158.3 billion. Its AUM market share edged up by 0.57%p from the previous year’s 2.13% to 2.70% at the close of FY 2023. This growth in AUM was primarily fueled by slowing interest rate hikes and robust investment returns. Strategically, the merger integrated the expertise and resources of both companies, enhancing the value and services offered to investors and solidifying its presence in the asset management sector both domestically and internationally. Indeed, a significant shift occurred in Woori Asset Management’s portfolio composition, which had been heavily concentrated on bond investments—accounting for 89.0% before the merger at the end of 2022—as it now moved towards one that was more diversified, with the bond composition reduced to 79.1% by the end of 2023. Throughout 2023, and with the aim of achieving balanced growth and cultivating future growth drivers, the com- pany inaugurated the New Growth IB Division and ventured into new businesses, such as global investments and pension investment consulting, in pursuit of new revenue streams. Also, WAM reaffirmed its leadership in ESG fund management by obtaining ESG fund certification for the second consecutive year. PLAN FOR 2024 WAM is refining its investment strategies by asset type and enhancing collaboration with Group subsidiaries to bolster profitability and expand its AUM. In addition, it is accelerating the growth of the asset management business by strategically attracting joint investments (seed funding) from Group subsidiaries in key areas, such as pension funds, EMP, ETFs, and alternative investment products. Through the merger, Woori Asset Management is focused on achieving balanced growth between traditional and alternative investment assets. While it is prioritizing the sale of pension and public funds for traditional assets, the company is also striving to boost the competitiveness of its alternative investment portfolio by curating funds based on premium assets in sectors like real estate, infrastructure, overseas alternatives, and investment finance. As a latecomer to the ETF market, WAM is poised to establish a competitive edge through innovative product development as it aims to increase AUM via strategic digital marketing and an expanded sales network. WAM is committed to laying a robust foundation for long-term growth in key areas such as retirement pension funds and ETFs, enhancing product competitiveness through the recruitment of top-ti- er professionals, and strengthening product development and sourcing capabilities, all while leveraging Group synergies. Woori Asset Management (WAM) is a comprehensive asset management company offering a variety of services, including fund management, investment advisory services, and discretionary investment management. Coupled with its expertise in alternative investments to create new growth engines, its merger with Woori Global Asset Management in January 2024 is expanding the company’s foothold in the global market. www.wooriam.kr WOORI ASSET MANAGEMENT Woori Asset ManagementFinancial Highlights 2021 2022 2023 AUM 27.39 30.71 43.16 Domestic Equities 2.15 2.02 2.89 Domestic Bonds 16.42 15.39 16.97 Fund of Funds 0.50 0.69 1.49 MMF 7.96 11.94 17.17 Derivatives/Alternative Investments 0.36 0.67 4.64 43.16 2.70 30.71 2.13 27.39 AUM Market Share (Unit: KRW trillion) (Unit: %) (Unit: KRW trillion) 2023 2023 2022 2022 2021 Certifications and Awards ・Money Today’s 2023 Korea Funds Awards - Fund Manager of the Year ・Maeil Business Daily’s 9th Korea Retirement Pension Awards 2023 - Best Domestic Fund ・KG Zeroin’s 2023 Korea Fund Awards - Special Award in the ESG category) ・Morning Star’s 2023 Morningstar Awards - Best Bond House Award) ・The Bell’s 2023 Korea Wealth Management Awards - Bond-Type Fund Management Company of the Year) ・The Bell’s 2022 Korea Wealth Management Awards - Bond-Type Fund Management Company of the Year) YoY+0.57%p YoY+40.5% * 2023 figures are aggregate figures of Woori Asset Management & Woori Global Asset Management (Woori Global Asset Management has been merged since Jan. 2024) 050 WOORI OVERVIEW ESG REPORT STRATEGY REPORT BUSINESS REVIEW FINANCIAL STATEMENT APPENDIX 2023 ACHIEVEMENTS As of the end of 2023, Woori Venture Partners was managing 15 funds with a total committed capital of KRW 1.44 trillion, with over 40 Korean and international institutions participating as limited partners in these funds. Even though there was a year-on-year decline in ROI driven by a fall in the valuations of KOSDAQ-listed growth stocks amidst rising interest rates, Woori Venture Partners remains committed to creating a sustainable profit structure. The company plans to focus on launching new funds and expanding venture investments to nurture high-quality venture companies. Despite the challeng- ing management environment for venture companies due to prolonged high interest rates and reduced liquidity, the com- pany actively supports the growth of promising venture com- panies into unicorn companies by continuously discovering new investment opportunities and making strategic follow-on investments. Today, Woori Venture Partners invests in startups across vari- ous sectors, including ICT, biotech/healthcare, deep tech, and consumer goods, with the cumulative number of companies in its portfolio surpassing 2,000. Of this total, more than 300 have now gone public. Some of the top portfolio companies include Viva Republica (fintech), Woowa Brothers (food tech), Moloco (AdTech), 42dot (autonomous driving), Nextin (semi- conductor equipment), Neuromeka (collaborative robots), Dexter Studios (VFX), Wanted Lab (recruitment platform), and Bmonument (cosmetic manufacturing). PLAN FOR 2024 In 2024, following Woori Venture Partners’ integration into Woori Financial Group, we embark on a significant leap forward, with plans to support the growth of venture com- panies through active investment execution and value en- hancement activities, while also focusing on the creation of synergies within the Group. The company aims to exceed the performance of the past two years by realizing excel- lent investment results and an Internal rate of return (IRR) of over 25%, including through major portfolio companies such as Toss (Viva Republica) and Zomato (an Indonesian grocery delivery company), as well as through the liquida- tion of two successful funds: the KTB China Platform Fund and the KTBN Venture Fund No.7. The company will also continue to focus on forming new funds to build a future revenue base, especially through Group-affiliated fund formations that seek to expand syn- ergies and align interests within the Group for long-term growth. There are plans to pursue the formation of various funds, including global funds and secondary funds in order to diversify investment strategies. Woori Venture Partners will also continuously make efforts to expand the global investment geographies. The com- pany signed MOU with Mubadala Capital, which is the wholly owned asset management subsidiary of Mubadala Investment Company, one of the most renowned sover- eign wealth funds in the Middle East, with the purpose of discovering co-investment opportunities and creating synergies between both Groups. This strategic partnership will enhance access to global investment deals in various sectors and facilitate significant growth through aligning with Mubadala’s global network. Woori Venture Partners Co., Ltd., originally established as Korea Technology Development Inc. in 1981, is Korea’s first- generation venture capital firm with over four decades of experience. In 2023, it became a subsidiary of Woori Financial Group and was rebranded as Woori Venture Partners Co., Ltd. The company actively conducts venture investments not only in Korea but also through its investment hubs in Silicon Valley, Shanghai, and Singapore. www.woorivp.com WOORI VENTURE PARTNERS Fund Commitment Amount by Year 2021 2022 2023 VC 1,124.5 1,419.3 1,400.3 PEF 40.0 40.0 40.0 Total 1,164.5 1,459.3 1,440.3 (Unit: KRW billion) Certifications and Awards ・Woori Venture Partners received a Minister of SMEs and Startups Award (VC organization category) at the 2023 Venture Investment Activation Merit Awards ・Executive Director Shin Tae-kwang received the Best Investment Deal Award (biotech category) at the 2024 Korea Venture Capital Awards 1,440.3 1,119.5 1,459.3 883.5 1,154.5 853.5 Fund Commitment Amount by Year (Unit: KRW billion) 2023 2020 2022 2019 2021 2018 Corporate History 1981・ Founded as Korea Technology Development Inc. 1988・Expanded into the U.S. market (a first among Korean VC firms) 2000・Renamed KTB Network Co., Ltd. 2006・Expanded into China (a first among Korean VC firms) 2008・Captive spinoff of the VC Division from the KTB Net- work 2011・Authorized as an SME investment company 2021・Listed on KOSDAQ 2022・Renamed Daol Investment Co., Ltd. 2023・Incorporated into Woori Financial Group (renamed Woori Venture Partners Co., Ltd.) CAGR11.0% 051 WOORI OVERVIEW ESG REPORT STRATEGY REPORT BUSINESS REVIEW FINANCIAL STATEMENT APPENDIX 2023 ACHIEVEMENTS In the face of challenging economic conditions domestically and internationally, Woori PEAM actively pursued new investment opportunities in 2023, ensuring both stability and profitability. This effort led to the launch of new funds totaling KRW 241.0 billion (KRW 110 billion in PEFs and KRW 131 billion in AI) and executing new investments of KRW 268.5 billion throughout the year (KRW 136.5 billion in PEFs and KRW 132 billion in AI). As of the end of 2023, the PEF division was managing 8 funds with a committed capital of KRW 968.7 billion. A blind fund 1) of KRW 110 billion focused on pre-/ post-restructuring corporate rejuvenation investments was established with major institutional investors’ capital, contributing to the increase in total AUM. Additionally, two blind funds 2) established in 2022 enabled KRW 136.5 billion in new investments in high-quality companies in new growth industry sectors. The alternative investment sector, which was operating 18 funds with a total commit- ted capital of KRW 1,346.2 billion by the end of 2023, has been diligently uncovering high-quality investment projects and expanding the corporate investment sector despite challenging market conditions. In fact, the establishment of the Woori New Growth Credit No. 1 General Private Investment Trust (a private loan fund) totaling KRW 70.5 billion and aimed at investing in promising SMEs, the Woori PE Secondary No. 1 General Private Investment Trust totaling KRW 60.5 billion and focused on fol- low-on investments, and the activation of the secondary market (LP share liquidation) have all been successful in demonstrating tangible results. Since starting operations in July 2016, the alternative investment sector has maintained thorough pre-/post- risk management without incurring any investment losses. PLAN FOR 2024 Woori PEAM aims to continuously achieve both quantitative and qualitative growth in 2024, with the goal of strengthening core business competitiveness and establishing a foundation for growth as a top-tier PE house. The PEF division plans to maximize investment outcomes by rigorously carrying out “value-enhancement” initiatives for portfolio companies and continuing to generate excellent results through successful investment execution in the three blind funds it established between 2022 and 2023. Furthermore, by discovering excellent invest- ment projects targeting large and mid-sized enterprises, we aim to solidify our posi- tion as a leading player in the PEF market by focusing on the establishment of large- scale project funds. For its part, the alternative investment division will focus on generating stable out- comes through meticulous post-management of existing investment projects while continuously expanding its business in the corporate investment sector (credit/sec- ondary funds) beyond existing real estate, infrastructure, and fund of funds, thereby enhancing profitability. 1) Woori Corporate Financial Stability No. 1 Private Investment Limited Partnership (established in De- cember 2023, KRW 110 billion) 2) Green ESG Growth No. 1 Private Investment Limited Partnership (established in May 2022, KRW 165,244 million), NH Woori New Growth Alpha No.1 Private Investment Limited Partnership (estab- lished in June 2022, KRW 220 billion) Established in October 2005, Woori Private Equity Asset Management (Woori PEAM) is a first-generation private equity manager in Korea. Encompassing the managing of private equity fund (PEF) operations and hedge fund management (alternative investments), Woori PEAM contributes to the Group’s scale-out efforts in its IB operations. www.wooripe.com WOORI PRIVATE EQUITY ASSET MANAGEMENT Certifications and Awards June 2023 Designated as the outsourced chief investment officer (OCIO) for Korea Asset Management Corporation’s Corporate Restructuring Fund Funds Commitment by Year 2021 2022 2023 YoY PEF Year-end Balance 382.8 858.7 968.7 12.8% Cumulative Commitment Amount (including dissolved funds) 1,394.1 1,913.5 2,023.5 5.7% AI Year-end Balance 1,192.6 1,215.2 1,346.2 10.8% Cumulative Commitment Amount (including dissolved funds) 1,667.8 1,791.5 1,922.5 7.3% Total Year-end Balance 1,575.4 2,073.9 2,314.9 11.6% Cumulative Commitment Amount (including dissolved funds) 3,061.9 3,705.0 3,946.0 6.5% (Unit: KRW billion) 052 WOORI OVERVIEW ESG REPORT STRATEGY REPORT BUSINESS REVIEW FINANCIAL STATEMENT APPENDIX Woori Credit Information’s main lines of business consist of debt collection, credit investigation, and asset management. Since its establishment as a credit information company in Korea, it has established itself as the frontrunner in the industry. Over the years, the company has maintained stable financial soundness, with lowest level of liabilities and largest asset size among all credit information firms in Korea affiliated with financial holding companies. Presently, Woori Credit Information is diversifying its revenue streams beyond cross- selling effects within the Group, aiming to strengthen its independent competencies while effectively preparing for any unforeseen market uncertainties. Moving forward, the company will continue to maintain its leadership by leveraging its strong marketing capabilities and exceptional management efficiency. www.wooricredit.com WOORI CREDIT INFORMATION 2023 ACHIEVEMENTS Stable Financial Soundness As of 2023, Woori Credit Information had remained a zero-debt firm. Also, the company has consistently generated profits since its inception. Furthermore, the company has kept its stable financial soundness, boasting the lowest level of liabilities and largest asset size among all Korean credit information firms affiliated with financial holding companies. Industry-Leading Percentage of Revenue from Non-affiliates Woori Credit Information earns the largest percentage of revenue from its non-af- filiates relative to its peers, further proving its high level of competitiveness. The company has long reinforced its business viability by sustaining a diversified cli- entele list outside the holding company and by expanding its business domains. PLAN FOR 2024 Woori Credit Information is committed to strengthening market competitiveness and fostering future growth with the following strategic initiatives: First, is securing a competitive advantage. The company will enhance its core competencies in debt management by improving data utilization and organizational evaluation standards. It plans to expand investi- gation services and expedite credit guarantee operations to consolidate the revenue base in the non-collection sector. Second, is expanding the revenue base. By sustaining partnerships with key policy finance institutions and pursuing new ven- tures such as in the certified electronic document business, the company aims to boost its non-Group customer base. Third, is enhancing efficient management. The company is set to complete its next-generation debt management system proj- ect, significantly upgrading its IT infrastructure and strengthening organizational ex- pertise to promote profit-driven and efficient management. Fourth, is establishing a future-oriented corporate culture. Dedicated to advancing ESG management both domestically and internationally, Woori Credit Information will enhance its internal control system, strengthen the fi- nancial consumer safety net, and develop a forward-looking organizational culture grounded in employee consensus. 45.7 41.4 34.0 Total Assets Debt-to-equity ratio Non-affiliate sales contribution (Unit: KRW billion) Woori Woori Woori Company A Company A Company B Company B Company B Company A KRW 45.7billion 21.2% 27.8% 39.6% 0.0% 48.9% 18.7% Certifications and Awards ・Winner in the ESG category at the Digital Chosun Ilbo’s 12th Corporate Social Responsibility Awards ・Winner in the ESG category at the 12th Corporate Social Responsibility Awards : Organized by Digital Chosun Ilbo 053 WOORI OVERVIEW ESG REPORT STRATEGY REPORT BUSINESS REVIEW FINANCIAL STATEMENT APPENDIX Woori Fund Service provides diverse administrative services and has been established under Article 254 of the Financial Investment Services and Capital Markets Act. These services encompass fund accounting, establishing reference prices for collective investment vehicles, and offering general administrative support for real estate investment trusts (REITs). After the successful development of the next-generation FundOne system, the company continues to innovate by creating new systems and nurturing talented individuals. In April 2023, WFS enhanced its competitiveness by launching ETF administrative management services. Additionally, the company pioneered digital asset business accounting services in Korea, as regulated under Article 2, Section 1 of the Special Financial Information Law, covering transactions such as the sale, purchase, and exchange of digital assets by virtual asset service providers (VASPs). It has also developed a digital asset business accounting solution (DABAS) system that has allowed it to lead the way in the evolving financial market. www.woorifs.co.kr WOORI FUND SERVICE 2023 ACHIEVEMENTS In spite of being a latecomer in the administrative management industry, Woori Fund Service is constantly expanding its customer base attributed to advanced systems that demonstrate stable performance, with assets under management (AUM) now surpassing KRW 170 trillion. In 2023, the company built a synergy-in- ducing system through collaboration efforts with Group subsidiaries and continued to operate its Work-Life Balance Vacation System to retain high-caliber profession- als for long-term employment. At the same time, it kept up with its systematic job training to enhance employee job satisfaction and strengthen internal controls and system upgrades. In April 2023, the company became the third private administrative manager to complete an ETF administrative management system, venturing into the market through a contract with one of the Group’s subsidiaries, Woori Asset Manage- ment. The entire process of the system development and market entry represents a milestone in terms of realizing Group-wide synergies through inter-subsidiary collaboration while also branding its competitive systems on future customers. Furthermore, the digital asset administrative management system—launched as an industry first in 2021—has successfully attracted new clients such as Coredax and LB Protocol, establishing an initial market for the service. WFS is also preparing new services through a digital asset credit/technology evaluation disclosure consortium alliance, advancing its leadership in the digital asset administrative management sector. PLAN FOR 2024 WFS plans to appeal further to its clients with the company’s proven technological prowess and system development capabilities of its ETF administrative manage- ment system. By the first half of 2024, the company aims to complete its UI and functionality improvement project for the FundOne System, continuously enhanc- ing the system to ascend to a top-tier position in the general administrative man- agement industry. Its goal is to increase the entrusted assets of clients and surpass KRW 183 trillion in AUM, while also making a concerted effort to attract new clients and retain existing ones. In addition, the ETF administrative management service launched in 2023 will focus on effective marketing strategies to attract new ETFs from Woori Asset Man- agement and other asset management clients handling ETFs, with the aim of es- tablishing itself as a significant third player in the ETF administrative management market, which is currently dominated by two competitors. Next, WFS will initiate full- scale marketing efforts for digital asset administrative management services based on its DABAS system (following the implementation of the Act on the Protection of Virtual Asset Users), as it aims to provide fair and reliable information to investors, protect client assets, and contribute to a healthy market environment. We will also launch services for our Integrated Virtual Asset Disclosure Service Platform, which has been under development since the end of 2022, through multilateral agree- ments like CryptoDart—a next-generation electronic disclosure platform providing fair assessment information on virtual assets—as we continuously create new reve- nue streams. 25 22 20 Shareholder’s Equity (Unit: KRW billion) 2023 2022 2021 3.5 3.9 3.6 Net Income (Unit: KRW billion) 2023 2022 2021 YoY+10.7% YoY△9.7% 054 WOORI OVERVIEW ESG REPORT STRATEGY REPORT BUSINESS REVIEW FINANCIAL STATEMENT APPENDIX Woori Finance Information System(Woori FIS) specializes in managing the integrated IT systems for Woori Financial Group, providing both internal and external systems integration (SI), infrastructure, and data services. As a leader in digital finance technology, the company focuses on innovation across all IT domains. www.woorifis.com WOORI FINANCE INFORMATION SYSTEM 2023 ACHIEVEMENTS In 2023, Woori FIS pursued five strategic directions to achieve the management goal of “Culture Change, Technology Challenge”: leading future technology, enhancing customer service, expanding growth foundations, innovating organizational culture, and advancing risk management. Key initiatives included the successful restructuring of IT governance to boost Group synergies, executing in-house SI projects to bolster digital support frameworks, establishing a Group-wide in-house cloud platform to spearhead future technologies, enhancing customer service satisfaction through our in-house relationship management organization, and strengthening incident-specific response systems to achieve an annual record of zero outages. PLAN FOR 2024 For 2024, the management goal is “New Jump to THE N.E.X.T.”, with plans to achieve four strategic objectives: bringing about new changes, overcoming new challenges, advancing to the next level, and realizing a flexible & stable Woori. Key tasks will in- clude the introduction of a new performance-based HR system, timely enhancement of the new WON banking system to boost our digital platform’s technological edge, identification and strategic development of new growth foundations in DX blind spots within Group subsidiaries, and the cultivation of a collaborative culture through active participation in ESG-driven technology management that is caring and humane. Through these efforts, Woori FIS is committed to becoming the most dependable IT/Digital Best Partner of Woori Financial Group, striving to significantly enhance the Group’s business competitiveness. Certifications and Awards Certification Extended onJune 24, 2023 Korea’s first financial IT service provider to obtain internationally recognized ESG certifications, the ISO 14001 (environmental management system) / ISO 45001 (occupational health & safety management system Certification Extended onOct. 28, 2023 Korea’s first financial holding company subsidiary to obtain the ISO 27017 (interna- tional cloud security standards) Management Goal for 2024 Strategic Objectives New Jump to THE N.E.X.T. New Change New Challenge Jump Up Flexible & Stable Woori 055 WOORI OVERVIEW ESG REPORT STRATEGY REPORT BUSINESS REVIEW FINANCIAL STATEMENT APPENDIX Woori Finance Research Institute (WFRI) was founded on December 26, 2012 under the vision of innovating today to create tomorrow. Committed to the stable growth of Woori Financial Group and the development of Korea’s financial industry, WFRI carries out research activities in all aspects of finance and economic affairs, such as the business strategies of financial companies, the financial sector, and financial markets, as well as macroeconomic issues. Through both field-oriented and global research activities, the institute supports the effective management decisions and business operations of Woori Financial Group. Serving as a guide to establish the optimal directions for relevant financial policies, WFRI is positioning itself as a trusted opinion leader in the Korean financial industry. www.wfri.re.kr WOORI FINANCE RESEARCH INSTITUTE 2023 ACHIEVEMENTS In 2023, Woori Finance Research Institute successfully completed carrying out five management strategies: 1) strengthening its responsiveness to changes in the internal and external business environment, 2) upgrading its in-house consulting competencies, 3) supporting the Group to reinforce global network competitiveness, 4) backing up the Group’s ESG management research, and 5) upgrading its own re- search output and utilization. In addition, establishing an Issue Monitoring Center has only reinforced WFRI’s re- sponse system for timely grasping key domestic and international developments and promptly reporting this information to executives. In-depth analyses of domestic and international economic conditions, financial market conditions, and key industry-spe- cific opportunities and risks were conducted throughout the year, supporting Group- wide macro research activities. WFRI performed consulting for key business activities as well, including wealth man- agement & investment management trend analysis and research for reinforcing CIB competencies and financial platform activation. It also supported the Group’s ESG management tasks and conducted comprehensive research across all aspects of ESG, focusing on environmental impacts, ESG management systems, and ESG fi- nance. Additionally, WFRI managed the Group Corporate Culture Health Diagnostics System development project. In addition to research on enhancing the competitiveness of the Group’s international network, WFRI organized the Woori Global Forum to keep Group employees informed about global trends and financial markets. In 2023, WFRI published 470 reports, primarily focusing on key management issues—a significant increase from the 417 reports it published in 2022. The institute also operat- ed an external advisory body to enhance its research expertise and mandated plagia- rism checks on all research reports to improve the quality of the research output. PLAN FOR 2024 Woori Finance Research Institute has set its management goal for 2024 at strengthening its role as a key think tank, aligning with the Group’s goal to become a leading financial group. To that end, WFRI has formulated seven strategic manage- ment objectives: 1) conducting research to enhance corporate finance competi- tiveness, 2) supporting global business growth, 3) developing strategies to diversify non-interest revenue sources, 4) carrying out in-depth investigations into future growth drivers for the Group, 5) fostering the Group’s low-cost, high-efficiency pro- cess innovations, 6) promoting a comprehensive corporate culture transformation, and 7) bolstering the Group’s crisis management capabilities. On top of that, WFRI will also promote full-scale innovation in the working process. Key initiatives for the year include supporting the database-building of promising SME borrowers and performing research to enhance CIB competitiveness, all in a bid to help the Group realize its vision of restoring its reputation as a corporate banking powerhouse. WFRI will also support research on management-related is- sues for the Group’s global network, uncover new business opportunities, and fos- ter partnerships with global institutions. Efforts will be made to boost non-interest income through the creation of a Wealth Management Product Map and enhance private banking (PB) capabilities. Moreover, WFRI plans to develop strategies to drive digital transformation, new businesses, and ESG win-win finance within the Group. Research comparing the management efficiency of major international banks will further back up the Group’s drive for cost-effective, high-efficiency innovation. Furthermore, WFRI will establish a Group Corporate Culture Health Diagnostics System to facilitate comprehensive corporate cultural transformation. Finally, Woori Finance Research Institute will leverage external expertise and broad- en its information sources to enhance its research capabilities. This approach will ensure robust support for the Group’s evolving needs in corporate culture, global issues, and corporate finance. 056 ORGANIZATIONAL CHART 8 Unit 19 Department General Shareholders’ Meeting Board of Directors CEO Strategy Planning Unit Strategy & Planning Department Business Portfolio Department Finance & Management Department Accounting Department IR Department Synergy Business Department ESG Management Department Future Innovation Department Finance Technology Department ICT Planning Department Public Relations Department Brand Strategy Depatment Risk Management Department Risk Model Validation Department Management Support Department Compliance Department Audit Department Finance Planning Unit Growth Support Unit Digital Innovation Unit Brand Unit Risk Management Unit Management Support Unit Compliance Officer Officer Candidates Recommendation Committee Board of Directors Secretariat Audit Committee Risk Management Committee Compensation Committee Subsidiary Representative Director Candidates Recommendation Committee Board ESG Management Committee Audit Unit CORPORATE CULTURE & LEADERSHIP CENTER WOORI OVERVIEW ESG REPORT STRATEGY REPORT BUSINESS REVIEW FINANCIAL STATEMENT APPENDIX 057 Network Phone Address New York Agency 1-212-949-1900 245, Park Ave. 43rd Floor, New York, NY 10167, USA LA Branch 1-213-620-0747~8 3360, West Olympic Blvd. Suite 300, LA, CA90019, USA London Branch 44-207-680-0680 9th Floor, 71 Fenchurch Street, London, EC3M 4BR,UK Tokyo Branch 81-3-6891-5600 Shiodome City Center 10th Floor, 5-2 Higashi-Shimbashi 1-Chome, Minato-ku, Tokyo, 105-7110 Japan Hong Kong Branch 852-2521-8016 Suite 1401, Two Pacific Place, 88 Queensway, Hongkong Singapore Branch 65-6422-2000 10 Marina Boulevard #13-05 MBFC Tower 2, Singapore 018983 Bahrain Branch 973-17-223503 P.O. Box 1151, 4th Floor, Entrance 1, Manama Centre Building, Manama, Bahrain Woori Bank Bangladesh Country Office 88-02-5881-3270 Suvastu Imam Square, 65 Gulshan Avenue, Dhaka - 1212, Bangladesh Dhaka Branch 88-02-5881-3270~3 Suvastu Imam Square (1st & 4th Fl.) 65 Gulshan Avenue, Dhaka, Bangladesh DEPZ Customer Service Center 880-2778-8030 Dhaka Export Processing Zone(Old Area), Ganakbari, Ssvar, Dhaka-1349, Bangladesh Chittagong Sub-Branch 880-931-728221~4 Ayub Trade Center, Holding # 1269/B, Sheikh Mujib Road, Agrabad Commercial Area, Gosaildanga, Ward #36, Double Mooring, Chattogram, Bangladesh Uttara Sub-Branch 880-2896-2125~6 Paradise Tower(Ground Floor) Plot 11, Sector 3, Uttara Model Town,Uttara, Dhaka 1230, Bangladesh Mirpur Sub-Branch 880-2902-1061~2 Padma Bhaban(First Floor), 1/9 Mirpur Road Pallabi, Mirpur-12, Dhaka-1216, bangladesh Narayanganj Sub-Branch 880-2769-2031~34 Adamjee Export Processing zone, Shiddhirganj, Narayanganj-1431 Bangladesh Motijheel Sub-Branch 880-2471-21001~04 AA Tower, 23, Ground Floor, Motijheel C/A, Dhaka Kawranbazar Sub-Branch 880-2446-12238~41 A.H.N Tower, Ground Floor, 13 Biponon C/A, Sonargaon Road, Bagla Motor, Dhaka Chittagong Customer Service Center 880-3133-3340362 BEPZA Building, 1st floor of Zone Services Complex in Chattogram EPZ(CEPZ) Gaeseong Branch 001-8585-2300~2 "Gaesong Industrial District Phase 1, 25 - 1 Business Support Center, 1st Floor 103 1st Floor, Bongdong-Ri, Gaeseong, Hwanghae-Do, North Korea" Sydney Branch 61-2-8222-2200 Suite 21.02, 126 Phillip Street, Sydney, NSW, Australia Dubai Branch 971- 4-325-8365 1102A, Level 11, The Gate Building, East Wing, P.O. Box 506760, DIFC, Dubai, United Arab Emirates Woori Bank India Regional Headquarters 91-22-6263-8100 Unit 601, 6th floor, Birla Centurion, Century Mills Compound, Pandurang Budhkar Marg, Worli, Mumbai, Maharashtra-400030, India Chennai Branch 91-44-3346-6900 Lotte India, 2nd Floor, No.4/169, Rajiv Gandhi Salai(OMR), Kandhanchavadi, Perungudi Taluk, Chennai-600096, Tamil Nadu, India Gurgaon Branch 91-12-4270-6703 1st Floor, Salcon Platina Building, MG Road, Sector-28, Sikanderpur, Gurga- on-122001,Haryana, India Mumbai Branch 91-22-6263-8100 Unit 601, 6th floor, Birla Centurion, Century Mills Compound, Pandurang Budhkar Marg, Worli, Mumbai, Maharashtra-400030, India Woori Bank Network Phone Address USA Woori America Bank 1-212-244-3000 330 5th Avenue New York, NY 10001, USA Manhattan Branch 1-212-244-1500 330 5th Avenue New York, NY 10001 Flushing Branch 1-718-886-1988 136-88 39th Avenue Flushing New York, NY 11354, USA Fort Lee Branch 1-201-363-9300 2053 Lemoine Avenue Fort Lee, NJ 07024, USA Woodside Branch 1-718-429-1900 43-22 50th St. Woodside, NY 11377, USA Ridgefield Branch 1-201-941-9999 321 Broad Avenue #104 Ridgefield, NJ 07657, USA Palisades Park Branch 1-201-346-0055 225 Broad Avenue Palisades Park, NJ 07650, USA Closter Branch 1-201-784-7012 234 Closter Dock Road Closter, NJ 07624, USA Elkins Park Branch 1-215-782-1100 7300 Old York Rd Elkins Park, PA 19027 Annandale Branch 1-703-256-7633 Seoul Plaza 4231 Markeham St. Annandale, VA 22003, USA Bayside Branch 1-718-224-3800 215-10 Northern Blvd. Bayside, NY 11361, USA Ellicott City Branch 1-443-973-3690 100352 Baltimore National Pike Ellicott City, MD 21042, USA Wilshire Branch 1-213-382-8700 3540 Wilshire Blvd. Unit 104, Los Angeles, CA 90010, USA Olympic Branch 1-213-738-1100 3360, West Olympic Blvd. Suite #300, LA, CA90019, USA Fullerton Branch 1-714-521-3100 5731 Beach Blvd., Buena Park, CA 90621, USA Buena Park Branch 1-714-534-6300 6940 Beach Blvd #D-124, Buena Park, CA Centreville Branch 1-703-988-9555 13832 Braddock Road. Centreville, VA 20121, USA Irvine Branch 1-949-885-3760 14252 Culver Dr. #G, Irvine, CA 92604 Torrance Branch 1-310-974-1880 2390 Crenshaw Boulevard, Units C Torrance CA 90501 USA San Jose LPO 1-415-652-9476 2328 Walsh Ave, Santa Clara CA 95051 USA Northern Branch 1-929-362-3330 164-25 Northern Blvd. Flushing NY 11358, USA Dallas LPO 1-972-810-0166 1028 MacArthur Dr.Suite #108, Carrollton, TX, 75007 Chicago LPO 1-224-938-9553 1247 Milwaukee Ave, Suite 207, Glenview, Illinois, 60025 Seattle LPO 1-206-948-6691 11900 N.E. 1st Street, Suite 300, Building G, Bellevue, WA 98005 Dallas Branch 2405 S. Stemmons FWY, Lewisville, TX 75067 Duluth Branch 1-770-624-5930 3360 Satellite Blvd., Suite 14, Duluth, GA 30096 CHINA Woori Bank China Limited 86-010-8412-3000 Floor 11-12, Block A Building 13, District4, Wangjing East Park, Chaoyang District Beijing China 100102 Head Office Business Department 86-010-8441-7771 Floor1 Block B Building 13 District4 Wangjing East Park Chaoyang District Beijing China 100102 Beijing Branch 86-010-8453-8880 1801-3, 1801-4, Samsung Building, No.31, Jinghui Street, Chaoyang District, Beijing, China Shanghai Branch 86-021-5081-0707 104B,502, Dongfangchunyi Building 1, 5F, Eshan Avenue 505 Pudong New Area, Shang- hai,200122, China Shenzhen Branch 86-0755-3338- 1234 1001,1002,1003,1004,1008 ,Hon Kwok City Commercial Center, Fuming Road, Futian District, Shenzhen, China Suzhou Branch 86-0512-6295- 0777 6F Building #58 Suzhou Center, Suxiu Road,Suzhou Industrial Park, Jiangsu, China TianJin Branch 86-022-2338-8008 NO.1 Building, Aocheng Commercial Square, Binshui West Road, Nankai District, Tianjin, 300381 CHINA GLOBAL NETWORK WOORI OVERVIEW ESG REPORT STRATEGY REPORT BUSINESS REVIEW FINANCIAL STATEMENT APPENDIX 058 Network Phone Address Purwakarta Branch 62264-8227474 Jl. Basuki Rahmat No. 94, Purwakarta/41114 Subang Branch 62260-421014 JL. Ahmad Yani No. 36/41211 Karawaci Tangerang Branch 6221-55772345 Ruko Pinangsia Blok H No. 1 Lippo Karawaci Kel. Cibodas Tangerang/15139 Garut Branch 62262-544672 Jl. Ahmad Yani No.33/44117 Medan Branch 6261-42007100 Jl. Zainul Arifin No. 53A Makassar Branch 6241-18001859 Jl. Gunung Latimojong, Ruko Metro Square Blok E No. 1 Bandar Lampung Branch 6272-15604961 Jl.. Raden Intan No. 80 D-E, Bandar Lampung , Lampung Pekanbaru Branch 6276-1579-5047 Jl. Jendral Sudirman No. 628, Pekanbaru, Riau Manado Branch 6243-1707-0025 Jl. Piere Tendean B1 No.12, Manado, North Sulawesi Buah Batu Sub-Branch 6222- 7306347 Jl. Buah Batu No. 58 Bandung/40265 Kopo Sub-Branch 6222-5436802 Komp Ruko Mas J-9 Jl. Kopo Cirangrang/40225 Cimahi Sub-Branch 6222-6634656 Jl. Raya Cibabat No. 310 Cimahi/40213 Sukajadi Sub-Branch 6222-2021761 Jl. Prof. Dr. Surya Sumantri Kav. 6, Bandung, West Java Soekarno Hatta Sub-Branch 6222-7509905 Jl. Soekarno Hatta No. 618 F/40286 Pemuda/Rawamangun Sub-Branch 6221-47862070 Jalan Paus No 91F, Pulogadung, Jakarta Timur Sumedang Sub-Branch 62261-206527 Jl. Prabu Geusan Ulun No.76/45311 Serang Sub-Branch 62254-224142 Jl. KH. Abdul fatah Hasan No.53 Kel. Cipare Serang/42124 Commercial Center Cikarang Sub-Branch 6221-89328838 Ruko The Capitol, Kawasan Industri JABABEKA, Jl. Niaga Raya Blok 2 C, Bekasi, West Java Kramat Jati Sub-Branch 6221-8002895 Jl. Pondok Gede Raya No. 12 Kebon Jeruk Sub-Branch 6221-53660160 Jl. Kelapa Dua Raya(RayaPanjang) No.2, Rt 008, Rw 002 Kel. Kelapa Dua Kec. Kebon Jeruk/12130 Pajajaran Sub-Branch 6222-20565353 Jl. Pajajaran no. 85, Bandung, West Java Lembang Sub-Branch 6222-2784797 Jl. Grand Hotel Lembang No.25 Bandung/40391 Deltamas Cikarang Sub-Branch 6221-89972635 Ruko Palais De Paris Blok. D Majalengka Sub-Branch 62233-8285460 Jl. KH. Abdul Halim No.447 Majalengka/45411 Kuningan Sub-Branch 62232- 8880938 Jl. Dewi Sartika No.4/45512 Indramayu Sub-Branch 62234-276236 Jl. DI. Panjaitan No.103/45212 Cibubur Sub-Branch 6221-84305050 Cibubur Times Square Blok B1/1 Jl. Alternatif Cibubur KM 3 Kel. Jatiraya, Kec. Jastisampurna Beka- si/17435 Cikampek Sub-Branch 62264-8385171/ 8385172 Jl. Terusan Sudirman No. 6B(Sudirman Center)/41373 Depok Sub-Branch 6221-7522091 JL. Margonda raya Ruko Aarden, Depok, West Java Salatiga Sub-Branch 62298-311828 Ruko Wijaya Square B5 Jl.Diponegoro No. 110 Salatiga/50711 Sidoarjo Sub-Branch 6231-8922842 JL. H. Sunandar 6 No. 1, Sidoarjo, East Java Mojokerto Sub-Branch 62321-383444 Jl. Gajah Mada No.85B/60319 Cianjur Sub-Branch 62263- 260941, 260943 Jl. Abdulah Bin Nuh No.15/43253 Pamulang/Ciputat Sub-Branch 6221- 7403205,7443335 Jl. RE. Martadinata No. 167 B RT.03 RW. 05 Cipayung, Ciputat, Kota Tangerang Selatan Sumber Sub-Branch 62231-8330618 Jl. Dewi Sartika No. 57 Sumber/45611 Bantul Sub-Branch 62274-367514 Jl. Jenderal Sudirman No. 130 Kabupaten Bantul/55713 Balaraja Sub-Branch 6221-29015618 Komplek Ruko Balaraja Center Blok A No.2 Jl. Raya Serang Km. 24 Talaga Sari Balaraja-tan- gerang/15610 Ciledug Sub-Branch 6221-7330545 Ruko Dian Plaza Jl. Raden Fatah No. 8A Kelurahan Sudirman Selatan,Ciledug/15225 Magelang Sub-Branch 62293- 326498/326499 Ruko Metro Square Blok F No.25/56172 Padalarang Sub-Branch 6222-6803940/41 Jl. Raya Padalarang No.463 H/40553 Patrol Sub-Branch 62234-5613627 Jl. Raya Patrol Anjatan Blok Bunder No. 52/45256 Gianyar Sub-Branch 62361-8958295 Jl. By.Pass Dharma Giri No.99/80511 Gresik Sub-Branch 6231-3981758 Ruko KIG Jl. Tri Dharma Kav. A-14/61117 Karawang Sub-Branch 62267-8407706 Perumahan Galuh Mas Ruko Street Festival Blok 3 No. H-9, Jl. Galuh mas Raya, Karawang, West Java Cibinong Sub-Branch 6221-87904397 Jl. Mayor Oking No 122, Kel. Cirimekar, Kec. Cibinong, Kabupaten Bogor Network Phone Address Shanghai Puxi Sub-Branch 86-021-5208-1000 1F, Maxdo Center, NO.8 Xingyi Road, Changning District, Shanghai, 200336, China Beijing Wangjing Sub-Branch 86-010-8471-8866 1F,NO.10, FURONG STREET, CHAOYANG DISTRICT, BEIJING 100102, CHINA Shanghai Wuzhonglu Sub-Branch 86-021-6446-7887 1C, Liaoshen Building, 1068 Wuzhong Road, Minhang District, Shanghai, 201103, China Shenzhen Futian Sub-Branch 86-0755-8826- 9000 Room 107, Daqing Building, NO.6027 Shennan Road, Futian District, Shenzhen 518040, China Shanghai Jinxiujiangnan Sub- Branch 86-021-3432-1116 No.101-1, 102 MT BLDG, 3999 Hongxin Road, Minhang District, Shanghai,China, 201101 Beijing Shunyi Sub-Branch 86-010-8945-2220 1-107A GangXin JiaYuan Shunyi District Beijing 101300 China DaLian Branch 86-0411-8765- 8000 2F-218, Yoma IFC, NO.128 Jinma Road, Dalian Development Area, Dalian, P.R. China 116600 Zhangjiagang Sub-Branch 86-0512-5636- 6696 B104/B205 Huachang Oriental Plaza, 11 Renmin East Road, Zhangjiagang Jiangsu, 215600 China Chengdu Branch 86-512-028-6557- 2336 No.302-306, 3F, Ping'an Fortune Center, No.1, Renmin South Road(Section 3), Chengdu, Sich- uan,China,610041 Weihai Branch 86-0631-599-6000 1801, 18th Floor, Building A3, Wisdom Valley, No. 17-5 Hong Kong Road, Economic and Technologi- cal Development Zone, Weihai City, Shandong Province, China Tianjin Heping Sub-Branch 86-022-8776-9000 36th Floor, China Life Finance Center, 38 Qufu Road, Heping District, Tianjin, 300042, China Chongqing Branch 86-023-6152-2222 Shop 2, First Floor, Jinjia International Building, No.10, GuiHua Street Branch Road, JiangBei District, ChongQing, China, 400000 Shanghai Jinqiao Sub-Branch 86-021-6882-0608 Room 202, 2 / F, Building B1, Shanghai International Trade Center, No. 1599 New Jinqiao Road, Pudong, Shanghai, China Beijing Sanyuanqiao Sub-Branch 86-010-8440-7177 26F, Tower A, Tianyuangang Center, C2, North Road, East Third Ring Road, Chaoyang District, Beijing, China Shenyang Branch 86-024-8186-0808 Room 2605-2608, Office Tower 1, Forum 66, No.1-1 Qingnian Street, Shenhe District, Shenyang City, Liaoning,China Shenzhen Qianhai Sub-Branch 86-755-3683-0888 1 Unit 07, 21/F, Qianhai Shimao Financial Center, No.3040 Xinghai Avenue, Qianhai Shenzhen-Hong Kong Coorperation Zone, Shenzhen,China INDONESIA PT. Bank Woori Saudara Indonesia 1906 Tbk 6221-50871906 Treasury Tower 26th, 27th FL. District 8 SCBD Lot 28 JI.Jend. Sudirman Kav. 52-53, Jakarta 12190 Corporate Branch 6221-50871888 Treasury Tower 26th, 27th FL. District 8 SCBD Lot 28 JI.Jend. Sudirman Kav. 52-53, Jakarta 12190 Diponegoro Branch 6222-87831906 JL. Diponegoro No,. 28, Bandung, West Java Cirebon Branch 62231-242006 Komplek Cirebon Super Blok (CSB) Mall Office Park Kav. No. 11 Jl. Cipto Bogor Branch 62251-8377887 Jl. Pangkalan Raya No. 8, Warung Jambu - Bogor/16151 Surapati Core Branch 6222-87241326 Komp Surapati Core F-01-02 Bandung Surabaya Branch 6231-5041906 Jl. Raya Darmo No.89, Surabaya, East Java Semarang Branch 6224-3521906 Ruko Imam Bonjol Square Kav 4 - Kota. Semarang Tasikmalaya Branch 62265-2351906 Ruko Plaza Asia Blok A5-A6, Jl. HZ. Mustofa No. 326 - Tasikmalaya/46126 Yogyakarta Branch 62274-549280 Jl. Mangkubumi No. 45 - Yogyakarta/55232 Denpasar Branch 62361-263755 Ruko Griya Alamanda blok 3-4,Jl. Cok Agung Tresna Renon-Denpasar/80235 The Gedung Energy Branch 6221-29951906 Gd The Energy Lot 11 A SCBD, Jl. Jendral Sudirman Kav 52 - 53, Jakarta/12190 Ampera Branch 6221-7821756 Jl. Ampera Raya No. 20 Gd.Medco III/12560 Purwokerto Branch 62281-622212 Jl. Jenderal gatot Subroto No.78 Purwokerto - Jawa Tengah/53116 Malang Branch 62341-421906 Jl. Letjen Sutoyo No. 27 Malang- Jawa Timur/65141 Solo Branch 62271-633600 Jl. Ronggo Warsito No. 53 Kota, Solo - Jawa Tengah/57131 Tangerang city Branch 6221-29529226 Tangerang City Business park Blok F/50 Jl. Jend. Sudirman No.1 Tangerang/15118 Pelembang Branch 62711-315828 Jl. Basuki Rahmat No. 886 A - Palembang/30127 Sukabumi Branch 62266-6251906 Jl. Jenderal Sudirman No. 31-Sukabumi/43111 Pekalongan Branch 62 285 4460505 Jl. KH. Mansyur No.64, Perkalongan Madiun Branch 62 351 4773000 Jl. Diponegoro No. 110, Madiun Jamber Branch 62 331 421648 Jl. Gajah Made No. Ruko Gajah Mada Square Block A2-3 Kediri Branch 62 354 526726 JL. Brawijaya No. 34 A, Kediri, East Java WOORI OVERVIEW ESG REPORT STRATEGY REPORT BUSINESS REVIEW FINANCIAL STATEMENT APPENDIX 059 Network Phone Address Klaten Sub-Branch 62-272-3359557 JL. Pemuda No. 254, Klaten , Central Java Pasuruan Sub-Branch 62-343-561-4700 JL.. Pahlawan No 44, Pasuruan, East Java Pati Sub-Branch 6229-5410-1614 Jl. Diponegoro No. 53, Pati, Central Java Sumenep Sub-Brancch 62-3428-6762234 JI. Trunouyo No. 244 Sumenep Pelabuhan Ratu Sub-Branch 62-266-6249715 Jl. Siliwangi Rt/Rw 02/18, Desa Pelabuhan Ratu Posco Cilegon Sub-branch 62254-369755 Annex Building Lt. 1 Jl. Afrika No.2 Krakatau Posco Cilegon/42435 Union Square Cikarang Sub-branch 6221-89909797 Ruko Union Square Blok A No.6 Lippo Cikarang, Cikarang Selatan Sadang Sub-Branch 62264-8220180 Sadang Terminal Square No.07,08,25 Jl. Raya Sadang Purwakarta/41181 Cikajang Sub-branch 6262-576094 Jl. Raya Cikajang No. 80 Garut Kendal Sub-branch 62294-644704 Jl. Raya Utama No.9 weleri kendal Wonosari Sub-branch 62274-3950673 Jl. KH. Agus Salim No.71A Wonosari - Kab Gunungkidul Purbalingga Sub-branch 62281-895553 JL. Letkol Isdiman No. 4, Purbalingga, Central Java Sragen Sub-branch 62271-895014 JL. Sukowati No. 93 Beloran, Sragen, Central Java Bintaro Sub-branch 6221-7374685 Jl. Veteran Raya no 42D, Bintaro, South Jakarta Probolinggo Sub-branch 6233-54491787 Ruko Manunggal No. 2, Jl. Soekarno Hatta Pandeglang Sub-branch 6225-35554739 Jl. Raya Labuan KM 1 Pasar Atom Sub-branch 6231-3503350 Jl. Pangampon No. 75 Citra Raya Sub-branch 6212-9014270 Ruko Cikupa Niaga Mas Blok A No. 12 Ahmad Yani Sub-branch 6221-3831-7066 JL. Ahmad Yani, Komplek Ruko Central Niaga Kalimalang Bekasi, West Java Pondok Kelapa Sub-branch 6221-86941678 JL. Inspeksi Kali Malang Komplek Billy & moon MLBZ Kav No. 3F, Duren sawit, East Jakarta Ciracas Sub-branch 6221-87735005 JL. Raya Lapangan Tembak No. 63 , Cibubur, East Jakarta Jepara Sub-branch 6291-4290507 Jl. Pemuda No. 21 D-E Banjarnegara Sub-branch 6286-5963716 Jl. Letjend S Parman No. 29 Purworejo Sub-branch 62-75-321457 JI. Ahmad Yani no.93, Purworejo Brebes Sub-branch 6228-3451-1421 JL. Jend. A. Yani no 71, Brebes, Central Java Karanganyar Sub-branch 62-271-6882712 Jalan Raya Palur Jurug RT 004/RW 001 Desa Ngringo, Kec. Jaten, Kab. Karanganyar Ungaran Sub-branch 6224-3532-2017 Jl. Gatot Subroto No. 232 Ungaran ,Semarang, Central Java Gading Serpong Sub-branch 62-21-5421-2159 Jl. Boulevard Raya Gading Sepong, Ruko Alexandrite 3, No.21, Kabupaten Tangerang Dalem Kaum Sub-branch 6222-4211906 Jl Dalam Kaum No. 5 - Kota.Bandung Pasar anyar Sub-branch 62251-8574423 Jl. Sawojajar No.12 B, Kota. Bogor Asabri Bandung Sub-branch 6222-7279740 Jl. Citarum No.6, Bandung, West Java Cililitan Asabri Sub-branch 6221-80876494 Jl. Mayjen Sutoyo No.11 Gedung PT Asabri (persero) Jl. Cililitan - jakarta Timur/13630 Asabri Sub-branch 62-31-82517971 Jl. Gayungan PTT, No. 43, Surabaya – 60235, Gedung Kantor Asabri Surabaya Asabri Semarang Sub-branch 62247-6403870 JL Perintis Kemerdekaan No3. Kel Pudakpayung Kec Banyumanik. Semarang, Central Java Bojonergoro Sub-branch 62-353-311271 Jl. Untung Suropati Ruko Adipura Block A-11 Darmaraja Sub-branch 62262-429000, 429069,428478 Jl. Raya Darmaraja No.253 desa Darmaraja, Kec Darmaraja Kab.Sumedang/45372 Jatinangor Sub-branch 6222-87834401 JL. Raya Cipacing No. 78, Bandung, West Java Jatibarang Sub-branch 62834-352911 Jl. Letnan Joni No.178 Kec. Jatibarang - Kab Indramayu/45273 Kebayoran Baru Sub-branch 6221-3825-0087 JL. Wijaya II Blok B No. 4, Kebayoran Baru, Komplek Ruko Grand Wijaya, South Jakarta Cikande Sub-branch 6225-47951546 Jl. Raya Jakarta - Serang KM 68, Ruko Grand Permata No. 10 Panglima Cilegon Sub-branch 62254-222133 Jl. Raya Serang- pandeglang KM 11 Lingkungan waru Lor,Desa/kel. Kamanisa Kec Curug Kota serang/42117 Kalasan Sub-branch 6227-44332487 JL. Laksda Adisucipto KM.10, Ruko Airport Square RT.001 RW.001 Purwomartani, Kalasan, Sleman, D.I Yogyakarta 55281 Pematang Siantar Sub-branch 62622-7253-499 Jl. Sangnawukuh blok A-40 Kompek Megaland, Pemantang Siantar, North Sumatra Metro Sub-branch 6272-5800-1701 JL. Jend. Sudirman No. 78F, Metro, Lampung Klungkung Sub-branch 6236-6558-2906 JL. Diponegoro No.45, Klungkung, Bali Network Phone Address Singaparna Sub-Branch 62265-543111-3 Jl. Raya Timur No.45 Singaparna/46416 Ciamis Sub-Branch 62265-772221 Ruko Jl Pasar Manis No. 35 -Kab. Ciamis Sleman Sub-Branch 6227-4505-1025 JL. Magelang Km 10, Sleman, Yogyakarta Losari Sub-Branch 62231- 8832738-39 Jl. Letjen S. Parman No. 20 Kecamatan Pabuaran , Kab. Cirebon Jawa Barat Bekasi/Pondok Gede Sub-Branch 6221-82611045-46 Jl Raya Jatimakmur Blok A No. 20 Pondok Gede, Kota Bekasi Ruko Taman Jatimakmur Indah Kudus Sub-Branch 62291-4249241 JL. AKPB Agil Kusumadya No. 104 A, Kudus, Central Java Pamanukan Sub-Branch 62260-551773 Jl. Eyang Tirtapraja No.54 Kab.Subang/41254 Majalaya Sub-Branch 6222-85963799 Jl. Alun-alun utara/Jl. Tengah komp ruko permata majalaya Blok C6/40382 Baleendah Sub-Branch 6222-6320-6012 JL. Raya Banjara No. 232, Baleendah, Bandung, West Java Megablock Cilegon Sub-Branch 62254-8484772 Jl. Raya Ahmad Yani Komp. Cilegon Green Megablock D3 No. 17 - Kota. Cilegon Rangkasbitung Sub-Branch 62252-203612 Jl Hardiwangun No.6 B Rangkasbitung - Kab. Lebak Tabanan Sub-Branch 62361-814160 Jl. Bypass Insinyur Soekarno No 17, Tabanan, bali Surabaya /Darmo Boulevard Sub-Branch 6231-7381906 Office Park II B.2 No.11 Soreang Sub-Branch 6222-5896880 Jl. Raya Soreang No.412/40900 Ujung Berung Sub-Branch 6222-7834128 Jl AH Nasution No. 28 - Kota.Bandung MERR Sub-Branch 6231-8480454 JL. Ir. H. Soekarno No. 360, Surabaya, East Java Luragung Sub-Branch 62223-2870016 Jl. Siliwangi No. 62, Ds. Luragungtonggoh, Kec. Luragung, Kab. Kuningan Pangandaran Sub-Branch 62265- 630400,630010 Jl. Parapat, Desa Pangandaran, kec pangandaran kab ciamis/46396 Purwodadi Sub-Branch 62292-423399 JL. Ahmad Yani No. 223, Grobogan, Central Java Leuwiliang Sub-Branch 62251-8640297 Jl. Raya Jasinga 11A Kel. Cibeber, Kec. Leuwiliang Kab Bogor/16640 Ciawi Tasikmalaya Sub-Branch 62265- 455163,455167 Jl. Perjuangan No.80 Kp.Karanganyar Rt. 04 Rw. 05 Desa Pakemitan Kec Ciawi Kab. Tasikmala- ya/46156 Cilacap Sub-Branch 62282-534474 JL. Letjen Suprapto No.4, Cilacap, Central Java Jombang Sub-Branch 62321-878906 Ruko Cempaka Mas Regency Block B-2. JL Soekarno Hatta Kel Kepuhkembeng Kec Peterongan. Jombang, East Java Banjar Sub-Branch 62265-740838 JL. Letjen Soewarto No.160, Banjar, West Java Boyolali Sub-Branch 62276-323655 Jl. Pandanaran No.179 B Kab.Boyolali/57313 Radio dalam Sub-Branch 6221-7211005 JL. Radio dalam raya No.4 Kel. Gandaria Utara Kec. Kebayoran baru Jakarta selatan/12160 Singaraja Sub-Branch 62362-25098 Jl. Ngurah Rai No. 16 Singaraja Kelurahan Kendran Kecamatan Buleleng/81112 Manonjaya Sub-Branch 62265-380510 Jl. RTA. Prawira Adiningrat No.214 A Desa Manonjaya kec.Manonjaya-Tasikmalaya Surabaya Utara /kertajaya Sub-Branch 6231-99452669 JL. Raya Gubeng No. 68 Ruko 21 , Surabaya, East Java Batu Sub-Branch 62341-513709 Jl. Brantas No.49 Batu-Malang/65314 Palimanan Sub-Branch 62231-343950 Jl. Otto Iskandardinata No.503 Palimanan cibadak Sub-Branch 6266-531915 Jl. Raya Suryakencana RT 03 RW 08, Cibadak - Kab. Sukabumi Kemang Pratama Bekasi Sub-branch 62254-369755 Jl. Niaga Raya Blok P No.22C RT 001/021 Kel. Bekasi Wates Sub-Branch 6227-4504-1027 JL. Kolonel Sugjono No. 4, Wates, Yogyakarta Karangnunggal Sub-Branch 62265 - 2584571/2584572 Jl. Raya Karangnunggal KP.Karangmekar RT/RW 03/09 Desa Hegarwangi Kec. Bantarkalong Kab. Wonogiri Sub-Branch 62271-633600 Jalan Ahmad Yani No 66, Wonogiri Kawali Sub-Branch 62265 791560 Jl. Siliwangi No.262, Desa Kawali mukti Kepanjen Sub-Branch 6234 1-379840 JL. Kawi No.22, Malang, East Java Pamekasan Sub-Branch 62324 333905/62324 333906 Jl. Kabupaten No.114 Kebumen Sub-Branch 62287 3878168 Jl. Ahmad Yani No.20, Kubumen Mangga Dua Sub-Branch 6221 62306495 Ruko Harco Mangga Dua Blok L. No.5 Kelapa Gading Sub-Branch 62 21 29364053 Jl. Boulevard Barat Ruko MOI Blok I No.15 Kayu Agung Sub-Branch 62-711-315828 Jl. Letnan Muthtar Saleh, Kayuagung, Palembang, South Sumatra WOORI OVERVIEW ESG REPORT STRATEGY REPORT BUSINESS REVIEW FINANCIAL STATEMENT APPENDIX 060 Network Phone Address Lewe II Branch 95 9 441580466 No. 241, Office Street, Min Wine Yat, No. 4 Ward, Lewe Township, Nay Pyi Taw, Myanmar TakkonⅠBranch 95 9 441473341 No. (ma-127), Yin Mar Street, Area (3), Mya Waddy Ward, Takkon Township, Nay Pyi Taw TakkonⅡBranch 95 9 441481276 No. 93, Thatoeminsaw Yat, Aung Zaya Ward, Takkon Township, Nay Pyi Taw Ottarathiri Branch 95 9 893642032 No. Ou-1513, Shwe Nant Thar Ward, Ottarathiri Township, Nay Pyi Taw Nattalin Branch 95-9-773579731 No.52, Apyin Tharzi Street, Tharzi Ward, Nattalin Township, Bago Taungwingyi Branch 95-9-692687628 No. 174, Ohntaw No. 2 Ward, Taungdwingyi Township, Magwey Natmauk Branch 95-9-891504155 No.22, Plot U Paing No.105, East Aung San Ward, Natmauk Township, Magway Danubyu Branch 95-9-754217498 No. 195, 5 Street, 17 Ward, Danubyu Township, Ayeyarwady PHILIPPINES Wealth Development Bank 63-32-415-5265 Taft Financial Center, Cardinal Rosales Avenue, Cebu Business Park, Cebu City, Cebu ALABANG BRANCH 63-2-801-5335 Unit 103, South Center Tower Condominium 2206 Market Street, Madrigal Business Par Alabang, Muntinlupa City ANGELES MARQUEE MALL BRANCH 63-45-624-0072 Ground Floor , Marquee Mall, Don Bonifacio St., Pulung Maragul Angeles City, Pampanga LEGAZPI PACIFIC MALL BRANCH 63-52-480-0038 G/F Expansion II, Pacific Mall Legazpi, Landco Business Park, F. Imperial Street Cor. Circumferential Road, Legazpi City 4500 LUCENA PACIFIC MALL BRANCH 63-42-795-3771 Ground Floor L 1-26, Pacific Mall, M.L. Tagarao St. Landco Business Park, Brgy. III , Lucena City, Quezon TAGUIG MARKET MARKET BRANCH 63-02-889-0275 Ground Floor, Play Ground Zone, Metro Market Market Mall, Mckinley Parkway, Fort Bonifacio Global City, Taguig City CEBU AYALA BRANCH 63-32-415-4888 Ground Floor, Taft Financial Center, Cardinal Rosales Avenue, Cebu Business Park, Brgy. Luz, Cebu City CEBU RAMOS BRANCH 63-32-412-6302 Ground Floor, Hilario Chu Bldg., No. 148 F. Ramos St. Santa Cruz, Cebu City CEBU CARBON BRANCH 63-32-416-9077 Ground Floor, M.C. Briones & Plaridel Sts., Cebu City CEBU MANDAUE BRANCH 63-343-8144 Ground Floor, G/F Meritz Building, A.C. Cortes Ave. Ibabao, Mandaue City, Cebu CEBU TABUNOK BRANCH 63-32-272-2955 Ground Floor, AGSy Bldg., National Hi-Way, Tabunok Talisay City, Cebu CEBU MANDAUE PACIFIC MALL METRO BRANCH 63-32-239-1072 Ground Floor, Mandaue Pacific Mall Metro National Highway corner M.B. Fernan Ave. Estancia, Ibabao, Mandaue City, Metro Cebu CEBU MAMBALING BRANCH 63-414-4233 G/F Metro Store Mambaling, Cebu, N. Bacalso Avenue corner F. Llamas Street, Basak San Nicolas, Cebu City TAGBILARAN BANKING CENTER 63-411-4860 Ground Floor, No. 15 JS Torralba St., Poblacion 2, Tagbilaran City, Bohol ILOILO BANKING CENTER 63-338-4419 Ground Floor, ACCE Bldg., Mabini Ledesma St., Liberation, Iloilo City CAGAYAN DE ORO BANKING CEN- TER 63-88-856-8974 Ground Floor, Jammin Lui Bldg., corner A. Velez & Gomez Sts. Poblacion, Cagayan de Oro City, Misamis Oriental DAVAO BRANCH 63-82-225-3318 Ground Floor, Door 8, 9 & 10 Grand MenSeng Hotel Pichon St., 1-E Poblacion, Davao City, Davao del Sur TACLOBAN BRANCH 63-053-832-3436 Real Street Corner Perichon Barangay 54, Tacloban City, Leyte CALOOCAN BRANCH 63-0917-870-7335 Rizal Avenue Extension, East Grace Park, Caloocan 1400, Metro Manila GENSAN BRANCH 63-083-553-2064 Gaisano Mall of GenSan, Digos-Makar Road, National Highway, Barangay Lagao, General Santos City, 9500, Philippines DUMAGUETE BRANCH 63-035-523-5532 1F Jose Building South Road Calindagan, Dumaguete City BACOLOD BRANCH 63-034-447-0227 Lacson-Luzuriaga Streets, Bacolod City, Negros Occidental BUTUAN BRANCH 63-0917-870-7390 JC Aquino Ave, corner, Pareja Subdivision, Butuan City, Mindanao NAGA BRANCH 63-054-881-2836 Ground Floor, Super Metro Camarines Sur, Panganiban Drive, Naga City, Casmarines Sur BAGUIO BRANCH 63-074-665-2394 NRC Building, Abanao Street, Baguio City, Benguet, Cordillera Administrative Region BINONDO BRANCH Lucky Chinatown Mall, Reina Regente St. Binondo, Manila, National Capital Region VIETNAM Woori Bank Vietnam Limited 84-04-7300-6802 34F, Keangnam Landmark 72, E6 Pham Hung Road, Tu Liem District. Hanoi, Vietnam Hanoi Branch 84-4-3831-5281 24F, Keangnam Landmark 72, E6 Pham Hung Road, Tu Liem District. Hanoi, Vietnam Hochiminh Branch 84-8-3821-9839 No. 7,8,9, 2nd Floor, Mplaza Saigon, 39 Le Duan St., Ben Nghe Ward, Dist. 1, HCMC, Vietnam Network Phone Address Banyuwangi Sub-branch 6233-3289-1660 JL. S. Parman No. 111, Banyuwangi, East Java Ponorogo Sub-branch 6235-2359-7288 JL. Soekarno Hatta No. 222, Ponorogo Jakarta Pusat Sub-branch (Salemba Sub-branch) 6221-2962-7877 Jl. Salemba Raya No. 22, District Senen, Central Jakarta Blitar Sub-branch 6234-2818-0338 Jl. Tentara Genie Pelajar No.4, District Pare, Kediri, East Java Rembang Sub-branch 6229-5698-4906 Jl. Jendral Sudirman No. 158, District Rembang, Central Java Asabri Makassar Sub-branch 6241-1896-1360 Jl. A. P Pettarani No. 21, Tamamaung, Panakkukang, Kota Makassar, Sulawesi Selatan. HONG KONG Woori Global Markets Asia Limited 852-3763-0888 Rooms 1907-1909, 19/F, Gloucester Tower, The Landmark, 15 Queen's Road Central, Hong Kong RUSSIA AO Woori Bank 7-495-783-9787 8th floor., Lotte Plaza, 8, Novinsky Boulevard, Moscow, 121099, Russia Saint-Petersburg Br. 7-812-327-9787 1st Floor, Atlantic City, 126 Savushkina Street, Saint-Petersburg, 197374, Russia AO Woori Bank Vladivostok Repre- sentative Office 7-423-240-7014 Vladivostok Business-Center Office No. 614, 29, Semenovskaya Str. Vladivostok, 690091, Russia BRAZIL Banco Woori Bank do Brazil S.A. 55-11-3511-3300 Avenida das Nacoes Unidas, 14,171, Crystal Tower, Conj.803, Vila Gertrudes, 04794-000, Sao Paulo-SP,Brasil Bom Retiro Branch 55-11-3511-3350 Rua Tres Rios, 261 Andar 2, Bom Retiro, Sao Paulo SP, Brasil MYANMAR Woori Finance Myanmar Co.,Ltd 95-01-643798 115/A, Pyay Road, Saw Bwar Gyee Kone Ward(10 miles), Insein Township Yangon, Myanmar North Okkalapa Branch 95-99-6889-2300 No. G-24, Thiri Yadanar Shopping Complex, North Okkalapa Township, Yangon Mingaladon Branch 95-1-643798 No. 226, 29 Ward, Min Street, Shwe Pyi Thar Township, Yangon Nyaungdon Branch 95-99-7674-7709 Room No. 103, 1st Street, 5 Quarter, Nyaungdon Township, Ayarwaddy, Myanmar Taikkyi Branch 95-9-7717-81028 Room No.9, Natsinkone Road, Ohtan Ward, Taikkyi Township, Yangon, Myanmar Hmawbi I Branch 95-9-974563586 2F No(26) Tatkyee Kone village, Hmawbi Township, Yangon, Myanmar Hmawbi II Branch 95-9-97456395 1F No(26) Tatkyee Kone village, Hmawbi Township, Yangon, Myanmar Maubin I Branch 95 9 9712 25895 No. 432, Yelal Street, (8)Ward, Maubin Township, Ayeyarwaddy Maubin II Branch 95 9 9616 12763 No. 432, Yelal Street, (8)Ward, Maubin Township, Ayeyarwaddy Kawhmu Branch 95 9 9742 91112 No 192/B, Bogyoke St. South Wd Kawhmu Townshop, Yangon Insein Branch 95 1 643798 No. 226, 29 Ward, Min Street, Shwe Pyi Thar Township, Yangon Kungyangon Branch 95 9 975 890019 No 540, Yadanar Pone 2nd St, Kangyi / Magyi Ward, Kungyangon Township, Yangon, Myanmar Zalun Branch 95 9 960996083 Bogyok St. Nyaung Pin Zay Ward, Zalun Township, Ayeyarwady, Myanmar Kyimyindaing Branch 95 9 960996092 No. 101, Tha Yet Taw(3) Upper St. Tha Yet Taw Ward, Kyimyindaing Township, Yangon, Myanmar Hinthada I Branch 95 9 960996099 No. 49, U Wisarra St. Pha Tar Gyi Ward, Hinthada Township, Ayeyardady, Myanmar Hinthada II Branch 95 9 961010611 No. 93, Nat Maw St. Panbetan Ward, Hinthada Township, Ayeyarwady, Myanmar Hinthada III Branch 95 9 961010611 No. 93, Nat Maw St. Panbetan Ward, Hinthada Township, Ayeyarwady, Myanmar Twantay Branch 95 9 961010511 No. 210, Bo Gyoke St. Kon Gyan(Middle) Ward, Twantay Township, Yangon Pyapon II Branch 95 9 950311096 No. 18C, 8th St. 9th Ward, Pyapon Township, Ayeyarwady Pantanaw I Branch 95 9 764433931 No. 1, Sel Myaung St. Myo Kwet Thit 1, Pantanaw Township, Ayeyarwady, Myanmar Pantanaw II Branch 95 9 764433932 No. 1, Sel Myaung St. Myo Kwet Thit 1, Pantanaw Township, Ayeyarwady, Myanmar Gyobingauk I Branch 95 9 764433935 No. 154, Ashay Myopat St. Pan Tin Ward, Gyobingauk Township, Bago, Myanmar Gyobingauk I Branch 95 9 764433936 No. 154, Ashay Myopat St. Pan Tin Ward, Gyobingauk Township, Bago, Myanmar Zigon Branch 95 9 780 113417 No. 8/B, Yangpn - Pyay St. 5 Ward, Zigon Township, Bago Paungde I Branch 95 9 780114012 Plot No. 79, Shwetaung Street, Min Kwet 3, Ward, Paungde Township, Bago, Myanmar Paungde II Branch 95 9 780114068 Plot No. 79, Shwetaung Street, Min Kwet 3, Ward, Paungde Township, Bago, Myanmar Lewe I Branch 95 9 402187901 No. 5/379A, Yangon-Mandalay Main Street, 5 Ward, Lewe Township, Naypyitaw Pyinmana I Branch 95 9 402187923 No. 181, Yarza Htarni St. Aung Thar Yar Ward, Pobbathiri Township, Nay Pyi Taw, Myanmar Pyinmana II Branch 95 9 402187924 No. 181, Yarza Htarni St. Aung Thar Yar Ward, Pobbathiri Township, Nay Pyi Taw, Myanmar WOORI OVERVIEW ESG REPORT STRATEGY REPORT BUSINESS REVIEW FINANCIAL STATEMENT APPENDIX 061 Network Phone Address Sithor Kandal - Preaek Changkran 010 855 600 Preaek Sandaek Village, Preaek Changkran Commune, Sithor Kandal District, Prey Veng Province Svay Rieng 087 666 746 Phum Kien Sang, Sangkat Svay Rieng, Krong Svay Rieng, Svay Rieng Province. Preah Sdach - Angkor Reach 010 855 522 Krasang Tong village, Angkor Reach commune, Preah Sdach district, Prey Veng province Kampong Trabaek - Prasat 010 855 244 Doun Tung Village, Prasat Commune, Kampong Trabaek District, Prey Veng Province Me Sang - Chi Phoch 093 855 054 Veang Village, Chi Phoch Commune, Me Sang District, Prey Veng Province Bavet - Chrak Mtes 087 666 368 Phum Thnal Cheat, Sangkat Chrak Mtes, Krong Bavet, Svay Rieng Province Romeas Haek - Kampong Trach 087 666 793 Ta Trav Village, Kampong Trach Commune, Romeas Haek District, Svay Rieng Province Kampong Rou - Nhor 087 555 280 Rou Village, Nhor Commune, Kampong Rou District, Svay Reang Province Rumduol- Kampong Chak 087 666 946 Chak Village, Kampong Chak commune Rumduol District Svay Rieng Province Takeo 090 855 660 Lot № 1742 & 1130, National Road № 2, Phum Thnal Baek, Sangkat Roka Krau, Doun Kaev Munici- pality, Takeo Province Bati District - Trapeang Sab 090 855 662 National Road № 2, Smau Khnhei village, Trapeang Sab commune, Bati district, Takeo province Tram Kak - Angk Ta Saom 090 855 311 National Road № 3, Angk Ta Saom Village, Angk Ta Saom Commune, Tram Kak District, Takeo Prov- ince Kiri Vong - Preah Bat Choan Chum 090 855 671 Lot № 1806, Kampong Village, Preah Bat Choan Chum Commune, Kiri Vong District, Takeo Province Treang - Smaong 090 855 575 Kampong Chrey Village, Smaong Commune, Treang District, Takeo Province Samraong - Samraong 090 855 388 Prey Totueng Village, Samraong Commune, Samraong District, Takeo Province Prey Kabbas - Prey Lvea 071 385 5059 Lvea Tnaot Village, Prey Lvea Commune, Prey Krabbas District, Takeo Province Chhuk - Satv Pong 088 855 8498 National Road № 3, Damnak Toap Khang Tboung village, Krang Snay commune, Chhuk district, Kampot province Banteay Meas - Tuk Meas Khang Lech 060 855 711 Prey Krala Khang Lech Village, Tuk Meas Khang Lech Commune, Banteay Meas District, Kampot Province Angkor Chey - Phnum Kong 071 333 6692 Pou Village, Phnum Kong Commune, Angkor Chey District, Kampot Province Kampong Trach - Kampong Trach Khang Kaeut 071 346 6661 Lot № 1416, Kampong Trach Ti Muoy Village, Kampong Trach Khang Kaeut Commune, Kampong Trach District, Kampot Province Preah Sihanouk 087 888 064 № 249, Street Ekareach 100, Phum Phum Bei, Sangkat Pir, Krong Preah Sihanouk, Preah Sihanouk Province Srae Ambel - Srae Ambel 087 888 105 Trapeang Village, Srae Ambel Commune, Srae Ambel District, Koh Kong Province Basedth - Pheari Mean Chey 087 888 029 Preah Mlob Village, Pheari Mean Chey Commune, Basedth District, Kampong Speu Province Kampong Speu 068 855 377 № 85, National Road № 4, Phum Borei Kammeakkar, Sangkat Rokar Thum, Krong Chbar Mon, Kam- pong Speu Province Samraong Tong - Saen Dei 071 385 5011 Street № 41, Tuol Ta Sokh Village, Saen Dei Commune, Samraong Tong District, Kampong Speu Province Ponhea Lueu -Tumnob Thum 068 855 388 Srae Ta Meaeng Village, Tumnob Thum Commune, Ponhea Lueu District, Kandal Province Samkkei Munichay - Krang Chek 071 385 5003 Krang Chongruk Village, Krang Chek Commune, Samkkei Munichay District, Kampong Speu Province Thpong - Prambei Mum 068 855 366 Anlong Chrey Village, Prambei Mum Commune, Thpong District, Kampong Speu Province Aoral - Sangkae Satob 087 888 060 Phsar Kantuot Village, Sangkae Satob Commune, Aoral District, Kampong Speu Province Phnum Sruoch - Kiri Voan 087 888 141 Phsar Trapeang Kraloeng Village, Kiri Voan Commune, Phnum Sruoch District, Kampong Speu Province Tuek Phos - Akphivoadth 087 777 060 Srae Ta Chey Village, Akphivoadth Commune, Tuek Phos District, Kampong Chhnang Province Kampong Chhnang 097 959 5739 National Road № 5, Phum Tuol Kralanh, Sangkat Kampong Chhnang, Krong Kampong Chhnang, Kampong Chhnang Province Kampong Leaeng - Kampong Hau 087 777 229 Kampong Boeng Village, Kampong Hau Commune, Kampong Leaeng District, Kampong Chhnang Province Kampong Tralach - Peani 087 777 069 National Road № 5, Soben Village, Peani Commune, Kampong Tralach District, Kampong Chhnang Province Baribour - Ponley 087 777 949 № A157, National Road № 5, Ponley Village, Ponley Commune, Baribour District, Kampong Chhnang Province Pursat 088 855 1141 Lot No. 506, National Road No5, Phum Ra, Sangkat Phteah Prey, Krong Pursat, Pursat Province Krakor - Anlong Tnaot 088 855 1989 № 56A, National Road № 5, Phsar Village, Anlong Tnaot Commune, Krakor District, Pursat Province Phnum Kravanh - Leach 090 855 253 Pech Ban Village, Leach Commune, Phnum Kravanh District, Pursat Province Veal Veaeng - Pramaoy 087 777 824 Pramaoy village, Pramaoy commune, Veal Veaeng district, Pursat province Network Phone Address Bac Ninh Branch 84-22-2390-8460 1st and 3rd Floor, Vincom plaza Bac Ninh, Ly Thai To Street, Suoi Hoa Ward, Bac Ninh City, Bac Ninh Province, Vietnam Hai Phong Branch 84-255-730-0101 NO. 4, Lot 22A, Le Hong Phong Street (Cat Bi Airport New Urban Area), Dong Khe Ward, Ngo Quyen District, Hai Phong City, Vietnam Thai Nguyen Branch 84-208-730-0010 2nd Floor, Gate 1, Samsung Electronics Vietnam Co.,Ltd. Thai Nguyen, Yen Binh Industiral Zone, Dong Tien ward, Pho Yen town, Thai Nguyen Province, Vietnam Binh Duong Branch 84-274-222-2631 10th Floor, Becamex Building, No.230, Binh Duong boulevard, Thu Dau Mot City, Binh Duong Prov- ince, Vietnam Phu My Hung Branch 84-28-7303-0503 Room No.103, 1st floor and Room No.203, 2nd floor, The 67 (678) Tower, No.67 Hoang Van Thai Street, Quarter 1, Tan Phu ward, District 7, Ho Chi Minh city Dong Nai Branch 84-251-730-0370 Ton Duc Thang road, Nhon Trach 3 Industrial Zone, Phase1, Hiep Phuoc, ward, Nhon Trach district, Dong Nai Provincem Vietnam Ha Nam Branch 84-266-730-0020 1st and 2nd floor, Tien Loc Building, Commercial Service Zone 4, Thanh Chau ward, Phu Ly City, Ha Nam Province, Vietnam Da Nang Branch 84-236-730-0321 2nd floor, Phi Long Technology Building, 52 Nguyen Van Linh Road, Nam Duong Ward, Hai Chau District, Da Nang City, Vietnam Bien Hoa Branch 84-251-730-0270 5th Floor, Sonadezi Building, No 1, Road 1, Bien Hoa 1 Industrial Zone, An Binh Ward, Bien Hoa City, Dong Nai Province, Vietnam Sai Gon Branch 84-28-7300-2710 Ground floor and 8th Floor, E-Town 1 Building, no. 364 Cong Hoa St. Ward 13, Tan Binh District, Ho Chi Minh City, Vietnam Vinh Phuc Branch 84-211-730-0010 1st and 2nd Floor, Bao Quan Hotel, 396 Me Linh Street, Lien Bao ward, Vinh Yen City, Vinh Phuc Province, Vietnam Hoan Kiem Branch 84-24-3204-5203 1st and 5th Floor, Asia Tower Building, No.6, Nha Tho street, Hang Trong ward, Hoan Kiem district, Hanoi city, Vietnam Samsung Electronics Transaction Office 84-22-2369-9431 1st and 2nd Floor, Halla building, Lot CC2, Yen Phong Industrial Zone, Yen Trung Commune, Yen Phong District, Bac Ninh Province, Vietnam Trang Due Transaction Office 84-22-5730-4868 1F, Youngjin E&C Vina Hai Phong, Lot CC3-2.1, Trang Due Industrial Park Phase 2, Hong Phong Commune, An Duong District, Dinh Vu - Cat Hai Economic Zone, Hai Phong City, Vietnam Vinhomes Central Park Transaction Office 84-28-3535-4900 P6-0.14 Park 6 (P6 SH.07), Vinhomes Central Park, 720A Dien Bien Phu Street, 22 Ward, Binh Thanh District, Hochiminh City Charmvit Tower Transaction Office 84-24-7306-9568 01st Floor, Grand Plaza Shopping Center Building, No 117 Tran Duy Hung, Trung Hoa Ward, Cau Giay District, Hanoi Ha Dong Transaction Office 84-24-7302-1899 Part of Ground Floor of V2, V3 Building, Van Phu Victoria – CT9, Van Phu New Urban Area, Phu La Ward, Ha Dong District, Hanoi Thao Dien Transaction Office 84-28-3636-9280 01-TMDV Luxury Apartments, No.179 Xa Lo Ha Noi Street, Thao Dien Ward, Thu Duc City, Ho Chi Minh City Can Tho Branch 84-29-2352-5016 No.209, 30/4 street, Xuan Khanh ward, Ninh Kieu district, Can Tho City Starlake Branch 84-24-7300-0028 K7TT1-SH06, Central area of Tay Ho Tay new urban project, Xuan La ward, Tay Ho district, Hanoi Le Dai Hanh Transaction Office 84-28-3535-9570 B1-02, 03, 1st Floor, Bao Gia Building, No.184 Le Dai Hanh Street, Ward 15, District 11, Ho Chi Minh City My Dinh Transaction Office 84-24-7305-1566 1st Floor (area 97m2), Sudico Tower, Me Tri Street, My Dinh 1 Ward, Nam Tu Liem District, Hanoi CAMBODIA Woori Bank(Cambodia) PLC. 023963333 Buliding 398, Preah Monivong Blvd, Sangkat Boeun Keng Kang 1, Khan Chamkarmon, Phnom Penh 12302, Kingdom of Cambodia Phnom Penh Head Office 023 963 333 Building No. 398, Preah Monivong Blvd., Phum Phum 1, Sangkat Boeng Keng Kang Ti Muoy, Khan Boeng Keng Kang, Phnom Penh Capital. Kandal 087 888 068 Building № 240, National Road № 2, Phum Krapeu Ha, Sangkat Prek Ruessey, Krong Ta Khmau, Kandal Province. S'ang - Preaek Koy 087 888 022 #1427, Preaek Run Village, Preaek Koy Commune, S'ang District, Kandal Province. Chbar Ampov - Nirouth 070 999 428 National road № 1, Phumi Boeng Chhuk, Sangkat Nirouth, Khan Chbar Ampov, Phnom Penh Kandal Stueng Branch - Preaek Roka 087 888 052 National Road № 2, Preaek Roka Village, Preaek Roka Commune, Kandal Stueng District, Kandal Province Leuk Daek - Kampong Phnum 081 666 996 National Road № 1, Ampil Tuek village, Kampong Phnum commune, Leuk Daek district, Kandal province Prey Veng 010 855 344 № 23, National Road № 11, Phum Lekh Prambei, Sangkat Kampong Leav, Krong Prey Veng, Prey Veng Province WOORI OVERVIEW ESG REPORT STRATEGY REPORT BUSINESS REVIEW FINANCIAL STATEMENT APPENDIX 062 Network Phone Address Angkor Chum - Ta Saom 087 555 496 Pram Damloeng Village, Ta saom Commune, Angkor chum District, Sirem reap Province Oddar Meanchey 087 555 485 Phum Doun Kaen, Sangkat Samraong, Krong Samraong, Oddar Meanchey Province. Chi Kraeng - Kampong Kdei 087 555 484 National Road No. 6, Kampong Kdei Muoy Village, Kampong Kdei Commune, Chi Kraeng District, Siemreap Preah Netr Preah - Chob Vari 090 855 995 Chob Village, Chob Veari Commune, Preah Netr Preah District, Banteay Meanchey Province Russey Keo - Tuol Sangkae 1 087 888 115 Phum Tuol Sampov, Sangkat Tuol Sangke 1, Khan Russey Keo, Phnom Penh Mean Chey - Stueng Mean Chey 3 069 777 034 № 19&21 EoE1, Veng Sreng Steet, Group 1, Phum Domnak Thom 5, Sangkat Stueng Mean Chey 3, Khan Mean Chey, Phnom Penh Ponhea Lueu - Vihear Luong 087 555 002 Building № 87, National Road № 5, Tep Pranam Village, Vihear Luong Commune, Ponhea Lueu District, Kandal Province Mukh Kampul - Preaek Dambang 087 888 034 La Edth Village, Preaek Dambang Commune, Mukh Kampul District, Kandal Province Khsach Kandal - Preaek Ta Meak 087 888 099 Preaek Ta Meak Village, Preaek Ta Meak Commune, Khsach Kandal District, Kandal Province Russey Keo - Svay Pak 087 777 631 National Road № 5, Phum Lu, Sangkat Svay Pak, Khan Russey Keo, Phnom Penh Pur SenChey - Chaom Chau 3 087 888 533 № 295, National Road № 4, Phum Chumpu Voan 2, Sangkat Chaom Chau 3, Khan Pur SenChey, Phnom Penh Chraoy Chongvar - Preaek Lieb 069 888 082 Building № JMR 45 & 47, National Road 6A, Phum Preaek Lieb, Sangkat Preaek Lieb, Khan Chraoy Chongvar, Phnom Penh Srei Santhor - Preaek Pou 087 888 264 Santey Village, Preaek Pou Commune, Srei Santhor District, Kampong Cham Province Ratanak Kiri 071 983 3357 Street № 78, Phum Chey Chumnas, Sangkat Labansiek, Krong Ban Lung, Ratanak Kiri Province Stung Treng 071 983 3361 Phum Kandal, Sangkat Stueng Traeng, Krong Stueng Traeng, Stueng Traeng Province Kaoh Nheaek - Srae Sangkum 071 385 5021 Reangsei Village, Srae Sangkum Commune, Kaoh Nheaek District, Mondul Kirni Province, Bar Kaev - La Minh 071 349 2929 Phum Muoy Village, La Minh Commune, Bar Kaev District, Ratanak Kiri Province Mondul Kiri 097 855 0241 Phum Kandal, Spean Mean Chey Commune, Krong Saen Monourom, Mondul Kiri Province Kampot 088 855 8498 Phum Kampong Bay Khang Cheung, Sangkat Kampong Bay, Krong Kampot, Kampot Province. Kamchay Mear - Smaong Khang Cheung 093 855 540 № 176, National Road № 8A,Tean Phleung Village, Smaong Khang Cheung Commune, Kamchay Mear District, Prey Veng Province Thma Koul - Ta Pung 093 855 199 Paoy Yong Village, Ta Pung Commune, Thma Koul District, Battambang province Koh Kong 088 855 8228 Street Khemara Phoumin, Group № 7, Phum Phum Ti Pir, Sangkat Smach Mean Chey, Krong Khe- mara Phoumin, Koh Kong Province Cheung Prey - Soutib 088 855 8962 Skon Village, Soutib Commune, Cheung Prey District, Kampong Cham Province Svay Chrum - Kraol Kou 093 855 447 Thlok Village, Kraol Kou Commune, Svay Chrum District, Svay Rieng Province Pea Reang - Roka 069 999 022 Snay Pol Village, Roka Commune, Pea Reang District, Prey Veng Province Prey Nob - Veal Renh 088 855 8850 National Road № 4, Veal Meas Village, Veal Renh Commune, Prey Nob District, Preah Sihanouk Province Ba Phnum - Chheu Kach 093 855 684 № 22, Street № 317, Chheu Kach Village, Chheu Kach Commune, Ba Phnum District, Prey Veng Province Kaoh Thum - Preaek Thmei 093 855 202 Kampong Svay Kraom Village, Preaek Thmei Commune, Kaoh Thum District, Kandal Province Chamkar Mon - Phsar Daeum Thkov 070 999 540 Building № 119B, Street № 271, Sangkat Phsar Doeum Thkov, Khan Chamkarmon, Phnom Penh. Russey Keo - Kilomaetr Lekh Pram- muoy 070 999 362 № 1A, National Road № 5, Phum Kraul Kor, Sangkat Kilomet Lekh Prammuoy, Khan Russey Keo, Phnom Penh Pur SenChey - Kakab 1 070 999 602 No 338, Russian Federation Blvd., Phum Paprak Khang Cheung, Sangkat Kakab 1, Khan Pur SenChey, Phnom Penh Kien Svay - Kokir 070 999 383 № 330B & 330C, National Road № 1, Kokir Village, Kokir Commune, Kien Svay District, Kandal Province Ta Khmau - Ta Khmau 070 999 603 № 31, National Road № 2, Phum Ta Khmau, Sangkat Ta Khmau, Krong Ta Khmau, Kandal Province. Praek Pnov - Praek Pnov 070 999 801 Phum Kandal, Sangkat Preaek Phnov, Khan Preae Phnov, Phnom Penh Angk Snuol - Baek Chan 070 999 563 National Road № 4, Trapeang Krasang Village, Baek Chan Commune, Angk Snuol District, Kandal Province. Prampir Meakkakra - Veal Vong 070 999 204 № 138D, Street № 215, Sangkat Veal Vong, Khan Prampir Meakkakra, Phnom Penh Khsach Kandal - Preaek Ta Kov 070 999 101 Street № 380, Preaek Lvea Village , Preaek Ta Kov Commune, Khsach Kandal District, Kandal Prov- ince Network Phone Address Kampong Thom 090 855 001 № 009B, Group 1, National Road № 6, Phum Stueng Saen, Sangkat Kampong Krabau, Krong Stueng Saen, Kampong Thom Province Taing Kouk - Triel 071 326 6668 Rumchek Village, Triel Commune, Taing Kouk District, Kampong Thom Province Stoung - Kampong Chen Tboung 071 983 3389 National Road № 6, Leap Tong village, Kampong Chen Tboung commune, Stoung district, Kampong Thom province Baray - Ballangk 060 855 148 Prey Ta Trav Village, Ballangk Commune, Baray District, Kompong Thom Province Sandan - Sandan 071 333 6694 Toekmleang village, Sandan commune, Sandan district, Kampong Thom province Prasat Sambour - Sambour 090 855 277 Sambour Village, Sambour Commune, Prasat Sambour District, Kampong Thom Province Chamkar Leu - Svay Teab 090 855 500 Thnol Bek Lech Village, Svay Tearb Commune, Chamkar Leu District, Kampong Cham Province. Battambang 010 855 881 Building № 99, Street № 3, Phum Maphey Osakphea, Sangkat Svay Por, Krong Battambang, Bat- tambang Province. Banan - Kantueu Pir 010 855 911 Banan Village Kantueu Pir Commune, Banan District, Battambang Province Rotonak Mondol - Sdau 069 855 668 № 34, Sdau village, Sdau Commune, Rotonak Mondol distrcit, Battambang province Moung Ruessei - Kear 016 855 291 Pou Muoy Village,Kear Commune, Moung Ruessei District, Battambang Province Bakan - Boeng Khnar 081 855 709 Khnach Romeas Village, Beung Khnar Commune, Bakan District, Pursat Province Pailin 010 855 922 Phum Ou Ta Puk Leu, Sangkat Pailin, Krong Pailin, Pailin Province Samlout - Ta Sanh 087 666 391 Ou Tontuem village, Ta sanh commune, Samlout district, Battambang province Kamrieng - Boeng Reang 087 555 978 Doung Village, Boeng Reang Commune, Kamrieng District, Battambang Province Preah Vihear 090 855 123 Phum La Edth, Sangkat Kampong Pranak, Krong Preah Vihear, Preah Vihear Province. Kuleaen - Kuleaen Tboung 090 855 156 Kuleaen Tboung Village, Kuleaen Tboung Commune, Kuleaen District, Preah Vihear Province Sangkum Thmei - Chamraeun 097 557 8790 Tbeang Village, Chamraeun commune, Sangkum Thmei district, Preah Vihear province Rovieng - Robieb 090 855 170 Lot № 333, Tnaot Mlu Village, Robieb Commune, Rovieng District, Preah Vihear Province Trapeang Prasat - Trapeang Prasat 090 855 176 Trapeang Prasat Village, Trapeang Prasat commune, Trapeang Prasat District, Oddar Meanchey Province Choam Ksant - Choam Ksant 068 855 987 Choam Ksant Village, Choam Ksant Commune, Choam Ksant District, Preah Vihear Province Kampong Cham 097 959 5739 Phum Boeng Snay, Sangkat Sambuor Meas, Krong Kampong Cham, Kampong Cham Province Prey Chhor - Chrey Vien 090 855 711 Doun Die village, Chrey Vean commune, Prey Chhor district, Kampong Cham province Stueng Trang - Preak Kak 090 855 700 Tnaot Ta Say Village, Preak Kak Commune, Stueng Trang District, Kampong Cham Province. Chol Kiri - Prey Kri 087 777 151 Prey Kri Tboung Village, Prey Kri Commune, Chol Kiri District, Kampong Chhnang Province Tboung Khmum 088 855 1811 National Road № 7, Phum Cheung Lang, Sangkat Suong, Krong Suong, Tboung Khmum Province Kaoh Soutin - Peam Prathnuoh 088 855 1788 Lot № 168, Phsar Thmei Village, Peam Prathnuoh Commune, Kaoh Soutin District, Kampong Cham Province Ponhea Kraek - Kaong Kang 068 855 962 Kandaol Kaong Village, Kaong Kang Commune, Ponhea Kraek District, Tboung Khmum Province Kratie 097 572 5271 Phum Ou Ruessei Ti Muoy, Sangkat Ou Ruessei, Krong Kratie, Kratie Province Chhloung - Chhloung 071 385 5097 Chrouy Thma Leu Village, Chhloung Commune, Chhloung District, Kratie Province. Snuol - Snoul 071 385 5098 Kbal Snuol Village, Snuol Commune, Snuol District, Kratie Province Kaev Seima - Srae Khtum 071 385 5099 Ou Am Village, Srae Khtum Commune, Kaev Seima District, Mondul Kiri Province Dambae - Dambae 088 855 1909 Sach Chey Sen Village, Dambae Commune, Dambae District, Tboung Khmum Province Memot - Memot 068 855 961 Masin Tuek Village, Memot Commune, Memot District, Tboung Khmum Province Banteay Meanchey 090 855 993 Phum Kourothan, Sangkat Ou Ambel, Krong Serei Saophoan, Banteay Meanchey Province. Paoy Paet - Ou Chrov 010 855 911 Phum Ou Chrov, Sangkat Ou Chrov, Krong Paoy Paet, Banteay Meanchey Province Thma Puok - Thma Puok 090 855 449 Kasen village, Thma Puok commune, Thma Puok district, Bantey Mean Chey province Bavel - Bavel 087 666 923 Dach Proat Village, Bavel Commune, Bavel District, Battambang Province Phnum Proek - Pech Chenda 087 666 396 Phnum Toch village, Pech Chenda commune, Phnum Proek district, Battambang province Siemreap 087 555 481 Building № 76, National Road № 6, Phum Chongkaosou, Sangkat Sla Kram, Krong Siemreap, Siem- reap Province Puok - Puok 087 555 477 Puok Chas Village, Puok Commune, Puok District, Siem Reap Province Srei Snam - Chrouy Neang Nguon 087 555 341 Chroy Neang Nguon village, Chroy Neang Nguon commune, Srey Snam district, Siem Reap prov- ince WOORI OVERVIEW ESG REPORT STRATEGY REPORT BUSINESS REVIEW FINANCIAL STATEMENT APPENDIX 063 Network Phone Address Ta Khmau - Roka Khpos 070 999 716 National Road № 21, Phum Preaek Khsev, Sangkat Rokar Khpos, Krong Ta Khmau, Kandal Province. Mean Chey - Stueng Mean Chey 1 070 999 531 Nº 6A & 7A, Samdech Munireth Blvd., Phum Trea, Sangkat Stueng Mean Chey 1, Khan Mean Chey, Phnom Penh Pur SenChey - Chaom Chau 2 070 999 412 Nº A21 & A23, Chaom Chao Blvd., Phum Chrey Kaong, Sangkat Chaom Chau 2, Khan Pur SenChey, Phnom Penh Chbar Ampov - Chbar Ampov Ti Pir 070 999 428 № 610B, National Road № 1, Phum Deum Slaeng, Sangkat Chbar Ampov Ti Pir, Khan Chbar Ampov, Phnom Penh. Tuol Kouk - Boeng Kak Ti Muoy 070 999 312 Lot No 18&19, Street No 289, Phum 11, Sangkat Boeng Kak Ti Muoy, Khan Toul Kork, Phnom Penh Dangkao - Dangkao 070 999 386 Street № 217, Phum Ta Lei, Sangkat Dangkao, Khan Dangkao, Phnom Penh Samraong Tong - Voa Sar 070 999 257 National Road № 4, Chambak Village, Voa Sar Commune, Samraong Tong District, Kampong Speu Province Saensokh - Kouk Khleang 070 999 524 № 11 & 13, Phnom Penh-Hanoi Friendship Blvd, Phum Roung Chakr, Sangkat Kouk Kleang, Khan Saensokh, Phnom Penh Kandal Stueng - Barku 070 999 154 #5, Street № 38, Svay Ming Village, Barku Commune, Kandal Stueng District, Kandal Province Ponhea Lueu - Phsar Daek 070 999 429 National Road № 5, Mlu Meun Village, Phsar Daek Commune, Ponhea Lueu District, Kandal Province Mukh Kampul - Preaek Anhchanh 070 999 019 № 271, National Road № 6A, Kraom Village, Preaek Anhchanh Commune, Mukh Kampul Dis- trict,Kandal Province. Doun Penh - Phsar Thmei Ti Bei (Central Market) 068 855 842 № 70E0, Street 136 corner Street 53, Phum Phum 1, Sangkat Phsar Thmei Ti Bei, Khan Doun Penh, Phom Penh Boeng Keng Kang - Tuol Svay Prey Ti Pir (Olympic) 093 855 886 / 071 464 7333 № 131, Samdech Monireth Blvd. corner Street 310, Phum Phum 10, Sangkat Tuol Svay Prey Ti Pir, Khan Boeng Keng Kang, Phnom Penh Doun Penh - Chey Chummeah (Riv- erside) 087 666 194 № 387, Preah Sisovath Blvd, Sangkat Chey Chummeah, Khan Doun Penh, Phnom Penh. Saensokh - Tuek Thla (Tuek Thla) 069 855 114 Russian Federation Blvd., Phum Chong Thnal Khang Kaeut, Sangkat Tuek Thla , Khan Saensokh, Phnom Penh Doun Penh - Chakto Mukh (Preah Monivong) 070 560 001 No. 322E0-E3, Preah Monivong Blvd, Phum 7, Sangkat Chakto Mukh, Khan Doun Pehn, Phnom Penh Toul Kork - Tuek L'ak Ti Bei (Phsar Heng Ly) 070 999 513 No. 322E0-E3, Preah Monivong Blvd, Phum 7, Sangkat Chakto Mukh, Khan Doun Pehn, Phnom Penh EUROPE Woori Bank Europe GmbH +49(0)69 299 254 0 MesseTurm, 29th floor, Friedrich-Ebert-Anlage 49, 60308, Frankfurt am Main, Germany Woori Bank Europe GmbH Hungary Representative Office +36-20-9444125 DBH SERVICED OFFICE BUDA SQUARE 3FL, 3039 LAJOS U. 48-66 1036 BUDAPEST, HUNGARY Network Phone Address Kuala Lumpur Representative Office 60-3-2163-8288 32F, Menara Prestige, Jalan Pinang, 50450, Kuala Lumpur, Malaysia Yangon Representative Office 95-01-646951 No.115(A) First Floor), Pyay Road, 10 Miles, Insein Township, Yangon, Myanmar Poland Representative Office 48-323-076-417 Uniwersytecka 13, 40-007, Katowice, Poland Overseas Office Woori Card TUTU Finance-WCI Myanmar Co Ltd.(Operate 32 networks) Room 8, Block 6, Mingalar Mandalay, Between Thazin Street and Ngu Shwe Wah Street, 73rd Street, Chanmyatharsi Township, Mandalay Phone: 95-22-000219 PT Woori Finance Indonesia Tbk(Operate 75 networks) Chase Plaza Lantai 12 & 15 Jl. Jend Sudirman Kav. 21, Jakarta Indonesia Woori Venture Partners Woori Venture Partners Singapore Br. 1 Raffles Quay #09-02 North Tower Singapore 048583 Woori Venture Partners US 350 Cambridge Ave. Suite 350, Palo Alto CA 94306 Phone: 1-650-324-4681 Woori Venture Partners Shanghai Office Room 2806, L'Avenue 99 Xianxia Road, Changning Districe, Shanghai (200051) Phone: 86-216-067-1778 Woori Asset Management Woori Asset Management Ho Chi Minh Office 615-4, 6FLOOR ME LINH POINT TOWER, 2 NGO DUC KE ST, DIST.1, HCMC, VIETNAM Phone: 84-28-3520-2811 WOORI OVERVIEW ESG REPORT STRATEGY REPORT BUSINESS REVIEW FINANCIAL STATEMENT APPENDIX 064 WOORI OVERVIEW ESG REPORT STRATEGY REPORT BUSINESS REVIEW FINANCIAL STATEMENT APPENDIX Disclaimer FINANCIAL AND OTHER INFORMATION The financial statements included in this annual report are prepared in accordance with the Korean International Financial Reporting Standards, or K-IFRS. Unless expressly stated otherwise, all financial data included in this annual report are presented on a consolidated basis. Discrepancies between totals and the sums of the amounts contained in any table may be a result of rounding. FORWARD-LOOKING STATEMENTS This report contains “forward-looking statements” of Woori Financial Group Inc. and its subsidiaries. These forward-looking statements are not guarantees of future performance and undue reliance should not be placed on them. Such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause actual performance and financial results in future periods to differ materially from any projec- tions of future performance or result expressed or implied by such forward-looking statements. Although forward-looking statements contained in this annual report are based upon what management of the Company believes are reasonable assumptions, there can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such state- ments. The Company undertakes no obligation to update forward-looking statements if circumstances or management’s estimates or opinions should change except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking statements. ※ This material has been prepared by Woori Financial Group to provide an overview of the company. WOORI FINANCIAL GROUP INC. Page(s) Independent Auditor’s Report…..………...................................................... 1-4 Consolidated Financial Statements Consolidated Statements of Financial Position............................................... 6 Consolidated Statements of Comprehensive Income....…...…………..……… 7-8 Consolidated Statements of Changes in Equity.............................................. 9 Consolidated Statements of Cash Flows………………………..……............... 10-11 Notes to the Consolidated Financial Statements……...……………...…… 12-187 Independent Auditor’ Report on Internal Control over Financial Reporting for Consolidation Purposes…...……...……...……...……...……...……………… 188-189 Operating Status Report of Internal Control over Financial Reporting… 190 152, Teheran-ro, Gangnam-gu, Seoul 06236 (Yeoksam-dong, Gangnam Finance Center 27th Floor) Republic of Korea Independent Auditor’s Report Based on a report originally issued in Korean To the Board of Directors and Shareholders of Woori Financial Group Inc. Opinion We have audited the consolidated financial statements of Woori Financial Group Inc. and its subsidiaries (“the Group”), which comprise the consolidated statement of financial position as of December 31, 2023, the consolidated statements of comprehensive income, changes in equity and cash flows for the year then ended, and notes, comprising of material accounting policy information and other explanatory information. In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as of December 31, 2023, and its consolidated financial performance and its consolidated cash flows for the year then ended in accordance with Korean International Financial Reporting Standards (“K-IFRS”). We also have audited, in accordance with Korean Standards on Auditing (KSAs), the Group's Internal Control over Financial Reporting (“ICFR”) for consolidation purposes as of December 31, 2023, based on the criteria established in Conceptual Framework for Designing and Operating Internal Control over Financial Reporting issued by the Operating Committee of Internal Control over Financial Reporting in the Republic of Korea, and our report dated March 6, 2024 expressed an unmodified opinion on the effectiveness of the Group’s internal control over financial reporting for consolidation purposes. Basis for Opinion We conducted our audit in accordance with Korean Standards on Auditing (KSAs). 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 that are relevant to our audit of the consolidated financial statements in Republic of Korea, 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. Key Audit Matter Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. Assessment of the allowance for credit losses for loans As discussed in Note 10 to the consolidated financial statements, the Group recognized an allowance for credit losses using the Expected Credit loss (ECL) impairment model for loans at amortized cost amounting to KRW 2,975,060 million as of December 31, 2023. ECL allowances are measured at amounts equal to either (i) 12-month ECL; or (ii) lifetime ECL for those loans that have experienced a Significant Increase in Credit Risk (SICR) since initial recognition or are impaired. The Group measures ECL allowances on an individual basis for individually significant corporate loans which have had SICR or have become impaired. The allowance for credit losses for all other loans is measured on a collective basis. For these loans, the Group measures ECL by estimating the Probability of Default (PD), the Loss Given Default (LGD) as well as the impact of future economic forecast information. For corporate loans, the Group’s credit rating of the borrower and future economic forecast information are used in the determination of the PD. The Group uses quantitative and qualitative factors to determine the credit rating of the borrower and the evaluation of the qualitative factors involves a high level of judgment by the Group. For the incorporation of future economic forecast information in the PD, the Group uses various information to select a model and this also involves a high level of judgment by the Group. We identified the following risk as a key audit matter, considering the likelihood of errors, the level of involvement of management judgement, and risk of material misstatement. - Risk that the allowance for credit losses which is measured on a collective basis is misstated due to error or fraud in the evaluation of the qualitative factors which is used for determining the internal credit ratings of corporate loans, and the manner in which future economic forecast information is incorporated. The following are the primary procedures we performed to address this key audit matter: - We evaluated the design and tested the operating effectiveness of certain internal controls related to: (i) the assessment of qualitative factors in the process of determining the Group’s credit rating of corporate loans; and (ii) the assessment of the appropriateness of the model selection process to incorporate future economic forecast information - We checked whether, for a sample of corporate loans with ECL measured on a collective basis, the Group’s policy was applied in the credit rating process - We involved credit risk professionals with specialized skills and knowledge, who assisted in: (i) using statistical methods to analyze the correlation between the future economic forecast information and PD; (ii) assessing the reasonableness of the rationale for the selection of the final model by checking the appropriateness and the reasonableness of the model selection criteria by statistically; and (iii) checking the accuracy of the PD which incorporated future economic forecast information by a recalculation. Other Matter The procedures and practices utilized in the Republic of Korea to audit such consolidated financial statements may differ from those generally accepted and applied in other countries. The consolidated financial statements of the Group for the year ended December 31, 2022 were audited by another auditor who expressed an unmodified opinion on those financial statements on March 7, 2023. Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with K-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, or has no realistic alternative but to do so. 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 KSAs 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 KSAs, 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 Group's internal control. • Evaluate the appropriateness of accounting policies used in the preparation of the consolidated financial statements 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. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards. From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. The engagement partner on the audit resulting in this independent auditor’s report is Jae-Beom Choi. KPMG Samjong Accounting Crop. Seoul, Korea March 6, 2024 This report is effective as of March 6, 2024, the audit report date. Certain subsequent events or circumstances, which may occur between the audit report date and the time of reading this report, could have a material impact on the accompanying consolidated financial statements and notes thereto. Accordingly, the readers of the audit report should understand that the above audit report has not been updated to reflect the impact of such subsequent events or circumstances, if any. - 5 - WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022 The accompanying consolidated financial statements including all footnote disclosures were prepared by, and are the responsibility of, the management of Woori Financial Group Inc. Jong Yong Yim President and Chief Executive Officer Main Office Address: (Address) 51, Sogong-ro, Jung-gu, Seoul (Phone Number) 02-2125-2000 WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF FINANCIAL POSITION AS OF DECEMBER 31, 2023 AND 2022 - 6 - December 31, 2023 December 31, 2022 (Korean Won in millions) ASSETS Cash and cash equivalents (Note 6) 30,556,618 34,219,148 Financial assets at fair value through profit or loss (“FVTPL”) (Notes 4, 7, 11, 12, 18 and 26) 21,544,756 19,860,573 Financial assets at fair value through other comprehensive income (“FVTOCI”) (Notes 4, 8, 11, 12, and 18) 37,891,495 33,085,080 Securities at amortized cost (Notes 4, 9, 11, 12 and 18) 23,996,172 28,268,516 Loans and other financial assets at amortized cost (Notes 4, 10, 11, 12, 18 and 41) 373,148,148 355,760,729 Investments in joint ventures and associates (Note 13) 1,795,370 1,305,636 Investment properties (Notes 14 and 18) 472,768 387,707 Property, Plant and Equipment (Notes 15 and 18) 3,176,759 3,142,930 Intangible assets (Note 16) 996,842 849,114 Assets held for sale (Note 17) 20,345 13,772 Net defined benefit asset (Note 24) 240,260 319,280 Current tax assets (Note 38) 203,542 53,274 Deferred tax assets (Note 38) 93,366 109,299 Derivative assets (Designated for hedging) (Notes 4,11,12 and 26) 26,708 37,786 Other assets (Notes 19 and 41) 3,841,787 3,061,552 Total assets 498,004,936 480,474,396 LIABILITIES Financial liabilities at fair value through profit or loss (“FVTPL”) (Notes 4, 11, 12, 20 and 26) 6,138,313 8,952,399 Deposits due to customers (Notes 4,11,21 and 41) 357,784,297 342,105,209 Borrowings (Notes 4, 6, 11, 12 and 22) 30,986,746 28,429,603 Debentures (Notes 4, 6, 11 and 22) 41,239,245 44,198,486 Provisions (Notes 23, 40 and 41) 806,031 545,865 Net defined benefit liability (Note 24) 6,939 35,202 Current tax liabilities (Note 38) 103,655 843,555 Deferred tax liabilities (Note 38) 470,311 31,799 Derivative liabilities (Designated for hedging) (Notes 4,11,12 and 26) 153,007 202,911 Other financial liabilities (Notes 4, 6, 11, 12, 25 and 41) 26,115,005 22,811,868 Other liabilities (Notes 6, 25 and 41) 803,897 690,157 Total liabilities 464,607,446 448,847,054 EQUITY Owners’ equity (Note 28) Capital stock 3,802,676 3,640,303 Hybrid securities 3,611,129 3,112,449 Capital surplus 935,563 682,385 Other equity (1,668,957) (2,423,392) Retained earnings 24,986,470 23,750,152 31,666,881 28,761,897 Non-controlling interests 1,730,609 2,865,445 Total equity 33,397,490 31,627,342 Total liabilities and equity 498,004,936 480,474,396 The accompanying notes are part of these consolidated financial statements. WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022 - 7 - 2023 2022 (Korean Won in millions) Interest income 20,641,554 14,654,549 Financial assets at FVTPL 192,094 106,698 Financial assets at FVTOCI 999,407 632,615 Financial assets at amortized cost 19,450,053 13,915,236 Interest expense (11,899,014) (5,957,970) Net interest income (Notes 11, 30 and 41) 8,742,540 8,696,579 Fees and commissions income 2,565,814 2,499,700 Fees and commissions expense (845,333) (789,530) Net fees and commissions income (Notes 11, 31 and 41) 1,720,481 1,710,170 Dividend income (Notes 11, 32 and 41) 240,293 159,982 Net gain on financial instruments at FVTPL (Notes 11, 33 and 41) 488,486 238,502 Net loss on financial assets at FVTOCI (Notes 11 and 34) (37,641) (21,498) Net gain arising on financial assets at amortized cost (Note 11) 203,942 74,204 Impairment losses due to credit loss (Notes 35 and 41) (1,894,916) (885,272) General and administrative expense (Notes 36 and 41) (4,443,433) (4,529,890) Other net operating expense (Notes 11, 26, 36 and 41) (1,520,723) (1,012,253) Operating income 3,499,029 4,430,524 Share of gain of joint ventures and associates (Note 13) 109,831 69,996 Other non-operating expense (91,407) (15,146) Non-operating income (Note 37) 18,424 54,850 Net income before income tax expense 3,517,453 4,485,374 Income tax expense (Note 38) (890,559) (1,161,392) Net income 2,626,894 3,323,982 Net gain(loss) on valuation of equity securities at FVTOCI 193,191 (30,146) Changes in capital due to equity method 8,603 (4,527) Remeasurement gain(loss) related to defined benefit plan (79,460) 251,440 Items that will not be reclassified to profit or loss: 122,334 216,767 Net gain(loss) on valuation of debt securities at FVTOCI 532,334 (463,725) Changes in capital due to equity method (5,638) 5,139 Net gain on foreign currency translation of foreign operations 45,080 32,536 Net loss on valuation of hedges of net investments in foreign operations (14,049) (20,701) Net loss on valuation of cash flow hedge (16,524) (9,835) Items that may be reclassified to profit or loss: 541,203 (456,586) Other comprehensive income (loss), net of tax 663,537 (239,819) Total comprehensive income 3,290,431 3,084,163 (Continued) WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022 (CONTINUED) - 8 - 2023 2022 (Korean Won in millions) Net income attributable to: 2,626,894 3,323,982 Net income attributable to owners 2,506,296 3,141,680 Net income attributable to non-controlling interests 120,598 182,302 Total comprehensive income attributable to: 3,290,431 3,084,163 Comprehensive income attributable to owners 3,164,464 2,909,053 Comprehensive income attributable to non-controlling interests 125,967 175,110 Earnings per share (Note 39) Basic and diluted earnings per share (Unit: In Korean Won) 3,230 4,191 The accompanying notes are part of these consolidated financial statements. WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022 - 9 - Capital Stock Hybrid securities Capital surplus Other equity Retained earnings Owners’ equity in total Non- controlling interests Total equity (Korean Won in millions) January 1, 2022 3,640,303 2,294,381 682,385 (2,167,614) 21,392,564 25,842,019 3,008,176 28,850,195 Total comprehensive income Net income - - - - 3,141,680 3,141,680 182,302 3,323,982 Net loss on valuation of financial instruments at FVTOCI - - - (493,462) - (493,462) (409) (493,871) Net gain(loss) due to disposal of equity securities at FVTOCI - - - 10,254 (10,254) - - - Changes in capital due to equity method - - - 612 - 612 - 612 Gain(loss) on foreign currency translation of foreign operations - - - 39,579 - 39,579 (7,043) 32,536 Loss on valuation of hedges of net investments in foreign operations - - - (20,701) - (20,701) - (20,701) Loss on valuation of cash flow hedge - - - (9,835) - (9,835) - (9,835) Capital related to non-current assets held for sale - - - (279) 279 - - - Remeasurement gain related to defined benefit plan - - - 251,180 - 251,180 260 251,440 Transactions with owners Dividends to common stocks - - - - (654,996) (654,996) (9,949) (664,945) Issuance of hybrid securities - 818,068 - - - 818,068 349,215 1,167,283 Dividends to hybrid securities - - - - (91,756) (91,756) (113,995) (205,751) Redemption of hybrid securities - - - (60,491) - (60,491) (559,565) (620,056) Changes in subsidiaries’ capital - - - 27,365 (27,365) - - - Changes in non-controlling interests related to business combinations - - - - - - 16,453 16,453 December 31, 2022 3,640,303 3,112,449 682,385 (2,423,392) 23,750,152 28,761,897 2,865,445 31,627,342 January 1, 2023 3,640,303 3,112,449 682,385 (2,423,392) 23,750,152 28,761,897 2,865,445 31,627,342 Total comprehensive income Net income - - - - 2,506,296 2,506,296 120,598 2,626,894 Net gain on valuation of financial instruments at FVTOCI - - - 725,513 - 725,513 12 725,525 Net gain(loss) due to disposal of equity securities at FVTOCI - - - (86) 86 - - - Changes in capital due to equity method - - - 2,996 (50) 2,946 19 2,965 Gain on foreign currency translation of foreign operations - - - 39,780 - 39,780 5,300 45,080 Loss on valuation of hedges of net investments in foreign operations - - - (14,049) - (14,049) - (14,049) Loss on valuation of cash flow hedge - - - (16,524) - (16,524) - (16,524) Remeasurement gain related to defined benefit plan - - - (79,498) - (79,498) 38 (79,460) Transactions with owners Comprehensive stock exchange 162,373 - 249,008 - - 411,381 (414,015) (2,634) Dividends to common stocks - - - - (978,376) (978,376) (11,647) (990,023) Changes in treasury stocks - - 1,128 (35,529) (100,000) (134,401) - (134,401) Issuance of hybrid securities - 498,680 - - - 498,680 299,327 798,007 Dividends to hybrid securities - - - - (131,148) (131,148) (95,637) (226,785) Redemption of hybrid securities - - - (1,695) - (1,695) (1,097,697) (1,099,392) Changes in subsidiaries’ capital - - (1,869) 60,491 (60,490) (1,868) (1,927) (3,795) Changes in non-controlling interests related to business combinations - - - - - - 138,478 138,478 Others - - 4,911 73,036 - 77,947 (77,685) 262 December 31, 2023 3,802,676 3,611,129 935,563 (1,668,957) 24,986,470 31,666,881 1,730,609 33,397,490 The accompanying notes are part of these consolidated financial statements. WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022 - 10 - 2023 2022 (Korean Won in millions) Cash flows from operating activities (Note 2): Net income 2,626,894 3,323,982 Adjustments to net income: Income tax expense 890,559 1,161,392 Interest income (20,641,554) (14,654,549) Interest expense 11,899,014 5,957,970 Dividend income (240,293) (159,982) (8,092,274) (7,695,169) Additions of expenses not involving cash outflows: Loss on financial instruments at FVTPL - 815,706 Loss on financial assets at FVTOCI 46,335 23,836 Impairment loss due to credit loss 1,894,916 885,272 Loss on other provisions 99,444 37,493 Retirement benefit 113,435 165,063 Depreciation and amortization 993,176 929,311 Net loss on foreign currency translation 366,026 - Loss on derivatives (designated for hedge) 35,583 250,268 Loss on fair value hedge 72,601 - Loss on valuation of investments in joint ventures and associates 22,710 28,861 Loss on disposal of investments in joint ventures and associates 588 3,690 Loss on disposal of Property, Plant and Equipment, intangible assets and other assets 1,873 3,177 Impairment loss on Property, Plant and Equipment, intangible assets and other assets 129 260 Other loss - 62,196 3,646,816 3,205,133 Deductions of income not involving cash inflows: Gain on financial assets at FVTPL 571,179 - Gain on financial assets at FVTOCI 8,694 2,338 Gain on other provisions 19,781 55,327 Net profit on foreign currency translation - 3,180 Gain on derivatives (designated for hedge) 114,875 71,179 Gain on fair value hedge 8,986 257,910 Gain on valuation of investments in joint ventures and associates 132,541 98,858 Gain on disposal of investments in joint ventures and associates 33,123 599 Gain on disposal of Property, Plant and Equipment, intangible assets and other assets 5,267 55,852 Reversal of impairment loss on Property, Plant and Equipment, intangible assets and other assets 230 310 Other income - 15,879 894,676 561,432 Changes in operating assets and liabilities: Financial instruments at FVTPL (1,715,646) (1,647,572) Loans and other financial assets at amortized cost (18,598,117) (5,986,828) Other assets (1,264,071) (1,314,877) Deposits due to customers 15,176,465 23,536,088 Provisions 136,521 (24,041) Net defined benefit liability (172,759) (133,421) Other financial liabilities 2,225,382 (2,514,238) Other liabilities 95,559 83,559 (4,116,666) 11,998,670 Interest income received 20,416,107 14,189,016 Interest expense paid (10,626,911) (4,965,594) Dividends received 202,257 159,993 Income tax paid (1,539,605) (1,030,480) 8,451,848 8,352,935 Net cash inflow from operating activities 1,621,942 18,624,119 (Continued) WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022 (CONTINUED) - 11 - 2023 2022 (Korean Won in millions) Cash flows from investing activities ㅜ Net cash out-flows from obtaining control (209,643) (378,394) Net cash out-flows from losing control (464) - Disposal of financial instruments at FVTPL 10,487,513 9,502,271 Acquisition of financial instruments at FVTPL (12,167,823) (10,274,187) Disposal of financial assets at FVTOCI 20,648,897 21,717,266 Acquisition of financial assets at FVTOCI (24,211,531) (16,110,501) Redemption of securities at amortized cost 8,727,124 5,872,961 Acquisition of securities at amortized cost (4,244,256) (16,873,194) Cash outflows from changes in subsidiaries (619,726) (346,386) Disposal of investments in joint ventures and associates 101,051 249,763 Acquisition of investments in joint ventures and associates (310,239) (143,345) Disposal of investment properties - 2,061 Acquisition of investment properties (99,234) - Disposal of Property, Plant and Equipment 19,001 44,839 Acquisition of Property, Plant and Equipment (164,696) (172,876) Disposal of intangible assets 2,513 978 Acquisition of intangible assets (228,503) (174,749) Disposal of assets held for sale 7,156 52,417 Net decrease of other assets 8,719 62,386 Net cash outflow from investing activities (2,254,141) (6,968,690) Cash flows from financing activities: Net cash in-flows from hedging activities 23,394 54,569 Net increase in borrowings 2,332,376 2,881,675 Issuance of debentures 31,101,841 23,402,694 Redemption of debentures (34,329,491) (23,887,568) Redemption of lease liabilities (160,673) (187,531) Net increase of other liabilities 118 513 Dividends paid (978,376) (654,996) Issuance of hybrid securities 798,007 1,167,283 Redemption of hybrid securities (1,100,000) (643,000) Dividends paid to hybrid securities (226,785) (205,751) Net increase in non-controlling equity liabilities 6,620 1,847 Dividends paid to non-controlling interest (11,647) (9,949) Changes in non-controlling interests (180,514) - Acquisition of treasury stocks (158,165) - Disposal of treasury stocks 23,118 - Net cash inflow (outflow) from financing activities (2,860,177) 1,919,786 Effects of exchange rate changes on cash and cash equivalents (170,154) 30,860 Net increase (decrease) in cash and cash equivalents (3,662,530) 13,606,075 Cash and cash equivalents, beginning of the period 34,219,148 20,613,073 Cash and cash equivalents, end of the Period (Note 6) 30,556,618 34,219,148 The accompanying notes are part of these consolidated financial statements. WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 12 - 1. GENERAL (1) Summary of the Parent company Woori Financial Group, Inc. (hereinafter referred to as the “Parent company”) is primarily aimed at controlling subsidiaries that operate in the financial industry or those that are closely related to the financial industry through the ownership of shares and was established on January 11, 2019 under the Financial Holding Company Act through the comprehensive transfer with shareholders of Woori Bank (hereinafter referred to as the “Bank”), Woori FIS Co., Ltd., Woori Finance Research Institute Co., Ltd., Woori Credit Information Co., Ltd., Woori Fund Services Co., Ltd. and Woori Private Equity Asset Management Co. Ltd. The headquarters of the Parent company is located at 51, Sogong-ro, Jung-gu, Seoul, Korea, and the capital stock is 3,802,676 million Won. The Parent company’s stocks were listed on the Korea Exchange on February 13, 2019, and its American Depository Shares (“ADS”) are also being traded as the underlying common stock on the New York Stock Exchange since the same date. The details of stock transfer between the Parent company and subsidiaries as of Incorporation are as follows (Unit: Number of shares) Stock transfer company Total number of issued shares Exchange ratio per share Number of Parent company’s stocks Woori Bank 676,000,000 1.0000000 676,000,000 Woori FIS Co., Ltd. 4,900,000 0.2999708 1,469,857 Woori Finance Research Institute Co., Ltd. 600,000 0.1888165 113,289 Woori Credit Information Co., Ltd. 1,008,000 1.1037292 1,112,559 Woori Fund Service Co., Ltd. 2,000,000 0.4709031 941,806 Woori Private Equity Asset Management Co., Ltd. 6,000,000 0.0877992 526,795 As of August 1, 2019, the Parent company acquired a 73% interest in Tongyang Asset Management Co., Ltd. and changed the name to Woori Asset Management Corp. Also, as of August 1, 2019, the Parent company gained 100% control of ABL Global Asset Management Co., Ltd., added it as a consolidated subsidiary and changed the name to Woori Global Asset Management Co., Ltd. on December 6, 2019. The Parent company paid 598,391 million Won in cash and 42,103,377 new shares of the Parent company to acquire 100% interest of Woori Card Co., Ltd. from its subsidiary, Woori Bank, on September 10, 2019. On the same date, the Parent company also acquired 59.8% interest of Woori Investment Bank Co., Ltd. from Woori Bank with 392,795 million Won in cash. As of December 30, 2019, the Parent company acquired a 67.2% interest (excluding treasury stocks, 51% interest including treasury stocks) in Woori Asset Trust Co., Ltd. (formerly Kukje Asset Trust Co., Ltd.) and added it as a consolidated subsidiary at the end of 2019. As of March 31, 2023, it acquired an additional 28.1% interests (excluding treasury stock, 21.3% in the case of including treasury stock). The Parent company acquired 76.8% (excluding treasury stocks, 74.0% interest including treasury stocks) interest in Woori Financial Capital Co., Ltd. (formerly Aju Capital Co., Ltd.) on December 10, 2020. In addition, as of April 15, 2021, the Parent company acquired 13.3% interests (excluding treasury stock, 12.9% when including treasury stock) in Woori Financial Capital Co., Ltd., and as of May 24, 2021, the Parent company additionally acquired treasury stock (3.6%) which Woori Financial Capital Co., Ltd. possessed. The Parent company paid 113,238 million Won in cash to acquire 100% interest of Woori Savings Bank from its subsidiary, Woori Financial Capital Co., Ltd., on March 12, 2021. As of August 10, 2021, the Parent company paid 5,792,866 new shares of the Parent company to the shareholders of Woori Financial Capital Co., Ltd. (excluding the Parent company) through comprehensive stock exchange and acquired residual interest (9.5%) of Woori Financial Capital Co., Ltd., to make it a wholly owned subsidiary. As of January 7, 2022, the Parent company established Woori Financial F&I Co., Ltd., an investment company for non-performing loans and restructuring companies (100% interest, 200 billion Won in stock payments) and included it as a subsidiary. WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 13 - As of March 23, 2023, the Parent company acquired a 53.9% interest (excluding treasury stocks, 52.0% interest including treasury stocks) in Woori Venture Partners Co., Ltd. (formerly Daol Investment Co., Ltd.), and added it as a consolidated subsidiary. As of May 30, 2023, the Parent company additionally acquired treasury stock (3.5%) which Woori Venture Partners Co., Ltd. possessed. As of August 8, 2023, the Parent company paid 22,541,465 new shares of the Parent company to the shareholders of Woori Investment Bank Co., Ltd. (excluding the Parent company) through comprehensive stock exchange and acquired residual interest (41.3%) of Woori Investment Bank Co., Ltd., to make it a wholly owned subsidiary. In addition, on the same day, the Parent company paid 9,933,246 new shares of the Parent company to the shareholders of Woori Venture Partners Co., Ltd. (excluding the Parent company) through comprehensive stock exchange and acquired residual interest (44.5%) of Woori Venture Partners Co., Ltd., to make it a wholly owned subsidiary. (2) Details of the Parent company and subsidiaries (hereinafter ‘Group’) as of December 31, 2023 and 2022 are as follows: Percentage of ownership (%) Location Financial statements date Subsidiaries Main business December 31, 2023 December 31, 2022 Held by Woori Financial Group Inc. Woori Bank Bank 100.0 100.0 Korea December 31 Woori Card Co., Ltd. Finance 100.0 100.0 Korea December 31 Woori Financial Capital Co., Ltd. Finance 100.0 100.0 Korea December 31 Woori Investment Bank Co., Ltd.(*1) Other credit finance business 100.0 58.7 Korea December 31 Woori Asset Trust Co., Ltd.(*1) Real estate trust 95.3 67.2 Korea December 31 Woori Savings Bank Mutual saving bank 100.0 100.0 Korea December 31 Woori Financial F&I Co., Ltd. Finance 100.0 100.0 Korea December 31 Woori Asset Management Corp. Finance 73.0 73.0 Korea December 31 Woori Venture Partners(*1) Other financial services 100.0 - Korea December 31 Woori Global Asset Management Co., Ltd. Finance 100.0 100.0 Korea December 31 Woori Private Equity Asset Management Co., Ltd. Finance 100.0 100.0 Korea December 31 Woori Credit Information Co., Ltd. Credit information 100.0 100.0 Korea December 31 Woori Fund Service Co., Ltd. Financial support service business 100.0 100.0 Korea December 31 Woori FIS Co., Ltd. System software development & maintenance 100.0 100.0 Korea December 31 Woori Finance Research Institute Co., Ltd. Other service business 100.0 100.0 Korea December 31 Held by Woori Bank Woori America Bank Finance 100.0 100.0 America December 31 Woori Global Markets Asia Limited Finance 100.0 100.0 Hong Kong December 31 Woori Bank China Limited Finance 100.0 100.0 China December 31 AO Woori Bank (*7) Finance 100.0 100.0 Russia December 31 PT Bank Woori Saudara Indonesia 1906 Tbk Finance 84.2 84.2 Indonesia December 31 Banco Woori Bank do Brasil S.A. Finance 100.0 100.0 Brazil December 31 Korea BTL Infrastructure Fund Finance 99.9 99.9 Korea December 31 Woori Finance Myanmar Co., Ltd. Finance 100.0 100.0 Myanmar December 31 Wealth Development Bank Finance 51.0 51.0 Philippines December 31 Woori Bank Vietnam Limited Finance 100.0 100.0 Vietnam December 31 Woori Bank (Cambodia) PLC Finance 100.0 100.0 Cambodia December 31 Woori Bank Europe Finance 100.0 100.0 Germany December 31 Kumho Trust First Co., Ltd. (*2) (*5) Asset securitization - 0.0 Korea - Asiana Saigon Inc. (*2) (*5) Asset securitization - 0.0 Korea - KAMCO Value Recreation First Securitization Specialty Co., Ltd. (*2) Asset securitization 15.0 15.0 Korea December 31 Jeonju Iwon Ltd. (*2) Asset securitization 0.0 0.0 Korea December 31 Wonju I one Inc. (*2) Asset securitization 0.0 0.0 Korea December 31 Heitz Third Co., Ltd. (*2) Asset securitization 0.0 0.0 Korea December 31 Woorihansoop 1st Co., Ltd. (*2) Asset securitization 0.0 0.0 Korea December 31 WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 14 - Percentage of ownership (%) Location Financial statements date Subsidiaries Main business December 31, 2023 December 31, 2022 Woori International First Co., Ltd. (*2) Asset securitization 0.0 0.0 Korea December 31 Wibihansoop 1st Co., Ltd. (*2) (*5) Asset securitization - 0.0 Korea - Woori QS 1st Co., Ltd. (*2) Asset securitization 0.0 0.0 Korea December 31 Woori Display 2nd Co., Ltd. (*2) Asset securitization 0.0 0.0 Korea December 31 Woori Dream 2nd Co., Ltd. (*2) Asset securitization 0.0 0.0 Korea December 31 Woori H 1st Co., Ltd. (*2) (*5) Asset securitization - 0.0 Korea - Woori K 1st Co., Ltd. (*2) Asset securitization 0.0 0.0 Korea December 31 Woori S 1st Co., Ltd. (*2) Asset securitization 0.0 0.0 Korea December 31 Woori Display 3rd Co., Ltd. (*2) Asset securitization 0.0 0.0 Korea December 31 TY 1st Co., Ltd. (*2) Asset securitization 0.0 0.0 Korea December 31 Woori KC No.1 Co., Ltd. (*2) (*5) Asset securitization - 0.0 Korea - Quantum Jump the 2nd Co., Ltd. (*2) Asset securitization 0.0 0.0 Korea December 31 ATLANTIC TRANSPORTATION 1 S.A. (*2) (*5) Asset securitization - 0.0 Marshall islands - Woori Gongdeok First Co., Ltd. (*2) Asset securitization 0.0 0.0 Korea December 31 HD Project Co., Ltd. (*2) (*5) Asset securitization - 0.0 Korea - Woori HW 1st Co., Ltd. (*2) Asset securitization 0.0 0.0 Korea December 31 Woori HC 2nd Co., Ltd. (*2) (*5) Asset securitization - 0.0 Korea - Woori Dream 3rd Co., Ltd. (*2) Asset securitization 0.0 0.0 Korea December 31 Woori SJS 1st Co., Ltd. (*2) Asset securitization 0.0 0.0 Korea December 31 Woori Steel 1st Co., Ltd (*2) Asset securitization 0.0 0.0 Korea December 31 SPG the 1st Co., Ltd. (*2) Asset securitization 0.0 0.0 Korea December 31 Woori-HWC 1st Co., Ltd. (*2) Asset securitization 0.0 0.0 Korea December 31 Woori HC 3rd Co., Ltd. (*2). Asset securitization 0.0 0.0 Korea December 31 Woori Park I 1st co., Ltd (*2) Asset securitization 0.0 0.0 Korea December 31 Woori DS 1st co., Ltd (*2) Asset securitization 0.0 0.0 Korea December 31 Woori HC 4th Co., Ltd. (*2) Asset securitization 0.0 0.0 Korea December 31 Woori SKR 1st Co., Ltd. (*2) Asset securitization 0.0 0.0 Korea December 31 Woori H chemical 1st Co.,Ltd (*2) Asset securitization 0.0 0.0 Korea December 31 HE the 1st Co.,Ltd. (*2) Asset securitization 0.0 0.0 Korea December 31 Woori Hub The 1st Co., Ltd. (*2) Asset securitization 0.0 0.0 Korea December 31 Woori K The 3rd Co., Ltd. (*2) Asset securitization 0.0 0.0 Korea December 31 Woori KF 1st Co., Ltd. (*2) Asset securitization 0.0 0.0 Korea December 31 WooriI TS 1st Co., Ltd. (*2) Asset securitization 0.0 0.0 Korea December 31 Woori H Square 1st Co., Ltd. (*2) Asset securitization 0.0 0.0 Korea December 31 Woori L Yongsan 1st Co., Ltd. (*2) Asset securitization 0.0 0.0 Korea December 31 Woori HC 5th Co., Ltd. (*2) Asset securitization 0.0 0.0 Korea December 31 Woori Ladena 1st Co., Ltd. (*2) Asset securitization 0.0 0.0 Korea December 31 Woori HR 1st Co., Ltd. (*2) Asset securitization 0.0 0.0 Korea December 31 Woori Lotte Dongtan 1st Co., Ltd. (*2) Asset securitization 0.0 0.0 Korea December 31 Woori HC 6th Co., Ltd. (*2) Asset securitization 0.0 0.0 Korea December 31 Woori ECO 1st Co., Ltd. (*2)(*5) Asset securitization - 0.0 Korea - Woori HO 1th Co., Ltd. (*2) Asset securitization 0.0 0.0 Korea December 31 Woori ESG 1st Co.,Ltd. (*2) Asset securitization 0.0 0.0 Korea December 31 Woori Osiria 1st Co.,Ltd. (*2) Asset securitization 0.0 0.0 Korea December 31 Woori Eco 2nd Co.,Ltd. (*2) Asset securitization 0.0 0.0 Korea December 31 Gangnam Landmark 2nd Co., Ltd(*2) Asset securitization 0.0 0.0 Korea December 31 Woori HP the 1st co.,Ltd. (*2) Asset securitization 0.0 0.0 Korea December 31 Woori KF 2nd Co., Ltd.(*2) Asset securitization 0.0 - Korea December 31 Woori ST 1st co.,Ltd.(*2) Asset securitization 0.0 - Korea December 31 Woori High End 1st co., Ltd.(*2) Asset securitization 0.0 - Korea December 31 Woori HD 1st co., Ltd.(*2) Asset securitization 0.0 - Korea December 31 Woori HW 2nd co., Ltd.(*2) Asset securitization 0.0 - Korea December 31 Woori Mirae 1st co., Ltd.(*2) Asset securitization 0.0 - Korea December 31 Heungkuk Global Private Placement Investment Trust No. 1 (*3) Securities investment and others 98.8 98.8 Korea December 31 AI Partners UK Water Supply Private Placement Investment Trust No.2 (*3) Securities investment and others 97.3 97.3 England December 31 WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 15 - Percentage of ownership (%) Location Financial statements date Subsidiaries Main business December 31, 2023 December 31, 2022 Multi Asset Global Real Estate Investment Trust No. 5-2 (*3) Securities investment and others 99.0 99.0 Korea December 31 IGIS Australia Investment Trust No. 209-1 (*3) Securities investment and others 99.4 99.4 Korea December 31 INMARK Spain Private Placement Real Estate Investment Trust No. 26-2 (*3) (*5) Securities investment and others 97.7 97.7 Korea - IGIS Global Private Placement Real Estate Fund No. 316-1 (*3) (*5) Securities investment and others 99.3 99.3 Korea - Woori G Global Secondary Private Placement Investment Trust No. 1 (*3) Securities investment and others 98.6 98.3 Korea December 31 JB Airline Private Placement Investment Trust No.8 (*3) Securities investment and others 97.0 97.0 Korea December 31 Kiwoom Harmony Private Placement Investment Trust No. 2 (*3) Securities investment and others 97.2 97.1 Korea December 31 Kiwoom Harmony Private Placement Investment Trust No. 1 (*3) Securities investment and others 97.4 97.2 Korea December 31 Kiwoom Frontier Private Investment Trust No.23[Bond] (*3)(*5) Securities investment and others - 99.8 Korea - Kiwoom Harmony Private Placement Investment Trust No. 4 (*3) Securities investment and others 96.2 - Korea December 31 Principal Guaranteed Trust (*4) Trust 0.0 0.0 Korea December 31 Principal and Interest Guaranteed Trust (*4) Trust 0.0 0.0 Korea December 31 Held by Multi Asset Global Real Estate Investment Trust No. 5-2 MAGI No.5 LuxCo S.a.r.l. Asset securitization 54.6 54.6 Luxembourg December 31 Held by MAGI No.5 LuxCo S.a.r.l. ADP 16 Brussels Asset securitization 100.0 100.0 Belgium December 31 Held by Woori Card Co., Ltd. TUTU Finance –WCI Myanmar Co., Ltd. Finance 100.0 100.0 Myanmar December 31 PT Woori Finance Indonesia Tbk. Finance 84.5 82.0 Indonesia December 31 Woori Card 2019-1 Asset Securitization Specialty Co., Ltd. (*2) (*5) Asset securitization - 0.5 Korea December 31 Woori Card 2020-1 Asset Securitization Specialty Co., Ltd. (*2) Asset securitization 0.5 0.5 Korea December 31 Woori Card 2021-1 Asset Securitization Specialty Co., Ltd. (*2) Asset securitization 0.5 0.5 Korea December 31 Woori Card 2022-1 Asset Securitization Specialty Co., Ltd. (*2) Asset securitization 0.5 0.5 Korea December 31 Woori Card 2022-2 Asset Securitization Specialty Co., Ltd. (*2) Asset securitization 0.5 0.5 Korea December 31 Woori Card 2023-1 Asset Securitization Specialty Co., Ltd. (*2) Asset securitization 0.5 0.5 Korea December 31 Woori Card 2023-2 Asset Securitization Specialty Co., Ltd. (*2) Asset securitization 0.5 - Korea December 31 Held by Woori Financial Capital Co., Ltd. Specified Money Market Trust Trust 100.0 100.0 Korea December 31 WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 16 - Percentage of ownership (%) Location Financial statements date Subsidiaries Main business December 31, 2023 December 31, 2022 Held by Woori Investment Bank Co., Ltd. Seari Second Securitization Specialty Co., Ltd. (*2) Asset securitization 5.0 5.0 Korea December 31 Namjong 1st Securitization Specialty Co., Ltd. (*2) Asset securitization 5.0 5.0 Korea December 31 Bukgeum First Securitization Specialty Co., Ltd. (*2) Asset securitization 5.0 5.0 Korea December 31 Bukgeum Second Securitization Specialty Co., Ltd. (*2) Asset securitization 5.0 5.0 Korea December 31 WS1909 Securitization Specialty Co., Ltd. (*2) Asset securitization 5.0 5.0 Korea December 31 WS2003 Securitization Specialty Co., Ltd. (*2) Asset securitization 5.0 5.0 Korea December 31 WS2006 Securitization Specialty Co., Ltd. (*2) Asset securitization 5.0 5.0 Korea December 31 WJ2008 Securitization Specialty Co., Ltd. (*2) (*5) Asset securitization - 5.0 Korea - WH2103 Securitization Specialty Co., Ltd. (*2) Asset securitization 5.0 5.0 Korea December 31 WN2103 Securitization Specialty Co., Ltd. (*2) Asset securitization 5.0 5.0 Korea December 31 WH2106 Securitization Specialty Co., Ltd. (*2) Asset securitization 5.0 5.0 Korea December 31 Held by Woori Asset Management Corp. Woori China Convertible Bond Hedging feeder Investment Trust H (debt-oriented hybrid) (*3) Securities investment and others 84.7 88.0 Korea December 31 Woori Together TDF 2025 (*3) Securities investment and others 30.1 - Korea December 31 Woori Together TDF 2035 (*3) Securities investment and others 48.0 57.1 Korea December 31 Woori Together TDF 2040 (*3) Securities investment and others 49.2 58.3 Korea December 31 Woori Together TDF 2045 (*3) Securities investment and others 61.0 69.3 Korea December 31 Woori Together TDF 2050 (*3) Securities investment and others 48.9 66.3 Korea December 31 Woori Franklin Technology Master Fund (USD) (*3) (*8) Securities investment and others 67.3 91.1 Korea December 31 Woori Franklin Technology Feeder Fund (H) (*3) Securities investment and others 31.4 71.8 Korea December 31 Woori Together OCIO Target Return Master fund (*3) (*5) (*8) Securities investment and others - 100.0 Korea - Woori Together OCIO Target Return Feeder fund (*3) (*5) Securities investment and others - 81.2 Korea - Woori High Graded Bond Target Return Fund 1 (*3) Securities investment and others 87.4 77.0 Korea December 31 Woori Multi Return Private Equity 2(*3) (*5) Securities investment and others - 30.9 Korea - Held by Woori Financial F&I Co., Ltd. WI2203 Securitization Specialty Co., Ltd. (*2) Asset securitization 5.0 5.0 Korea December 31 WM2203 Asset Securitization Specialty Co., Ltd. (*2) Asset securitization 5.0 5.0 Korea December 31 WNI2206 Asset Securitization Specialty Co., Ltd. (*2) Asset securitization 5.0 5.0 Korea December 31 WI2209 Securitization Specialty Co., Ltd. (*2) Asset securitization 5.0 5.0 Korea December 31 WN2212 Asset Securitization Specialty Co., Ltd. (*2) Asset securitization 5.0 5.0 Korea December 31 WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 17 - Percentage of ownership (%) Location Financial statements date Subsidiaries Main business December 31, 2023 December 31, 2022 WK2212 Asset Securitization Specialty Co., Ltd. (*2) Asset securitization 5.0 5.0 Korea December 31 WH2306 Securitization Specialty Co., Ltd.(*2) Asset securitization 5.0 - Korea December 31 WN2306 Securitization Specialty Co., Ltd.(*2) Asset securitization 5.0 - Korea December 31 WNKN2309 Securitization Specialty Co., Ltd.(*2) Asset securitization 5.0 - Korea December 31 WB2309 Securitization Specialty Co., Ltd.(*2) Asset securitization 5.0 - Korea December 31 WI2311 Securitization Specialty Co., Ltd. (*2) Asset securitization 5.0 - Korea December 31 WSB2312 Securitization Specialty Co., Ltd. (*2) Asset securitization 5.0 - Korea December 31 WK2312 Asset Securitization Specialty Co., Ltd. (*2) Asset securitization 5.0 - Korea December 31 WBS2312 Securitization Specialty Co., Ltd. (*2) Asset securitization 5.0 - Korea December 31 VOGO DL General Private Equity Investment Trust 1(*3) Securities investment and others 99.0 - Korea December 31 Held by Woori Venture Partners Co.,Ltd. (*1) Woori Venture Partners US Other financial services 100.0 - America December 31 Held by Woori Global Asset Management Co., Ltd. Woori G Global Multi Asset Income Private Placement Investment Trust_Class Cs (*3) Securities investment and others 37.7 37.9 Korea December 31 Woori G Happy Retirement Lifetime Income TIF Mixed Asset Investment Trust[FoF] C(Y) (*3) (*5) Securities investment and others - 99.3 Korea - Held by Woori Bank, Woori Financial Capital Co., Ltd., and Woori Private Equity Asset Management Co., Ltd. (*6) Green ESG Growth No.1 Private Equity Fund(*3) Securities investment and others 30.3 - Korea December 31 Woori New Growth Credit Fund 1(*3) Securities investment and others 100.0 - Korea December 31 Woori PE Secondary Fund 1 (*3) Securities investment and others 100.0 - Korea December 31 Held by Woori Financial Capital Co., Ltd., Woori Private Equity Asset Management Co., Ltd. and Woori Investment Bank Co., Ltd. (*6) Japanese Hotel Real Estate Private Equity Fund 1 (*3) Securities investment and others 100.0 100.0 Korea December 31 Held by Woori Bank, Woori Financial Capital Co., Ltd., Woori Investment Bank Co., Ltd., Woori Savings Bank and Woori Private Equity Asset Management Co., Ltd. (*6) Woori Innovative Growth Professional Investment Type Private Investment Trust No.1 (*3) Securities investment and others 90.0 90.0 Korea December 31 Held by Woori Bank, Woori Financial Capital Co., Ltd., Woori Investment Bank Co., Ltd. and WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 18 - Percentage of ownership (%) Location Financial statements date Subsidiaries Main business December 31, 2023 December 31, 2022 Woori Private Equity Asset Management Co., Ltd. (*6) Woori Innovative Growth Professional Investment Type Private Investment Trust No.2 (*3) Securities investment and others 85.0 85.0 Korea December 31 Woori Innovative Growth New Deal Private Investment Trust No.3 (*3) Securities investment and others 94.3 94.3 Korea December 31 Held by Woori Bank, Woori Financial Capital Co., Ltd., and Woori Investment Bank Co., Ltd. (*6) Woori G GP Commitment Loan General Type Private Investment Trust No.1 (*3) Securities investment and others 100.0 100.0 Korea December 31 Woori G Equity Bridge Loan General Type Private Investment Trust No.1 (*3) Securities investment and others 80.0 80.0 Korea December 31 Woori G GP Commitment Loan General Type Private Investment Trust No.2 (*3) Securities investment and others 100.0 100.0 Korea December 31 Woori G GP Commitment Loan General Type Private Investment Trust No.3 (*3) Securities investment and others 100.0 - Korea December 31 Held by Woori Bank, Woori Financial Capital Co., Ltd., and Woori Global Asset Management Co., Ltd. (*6) Woori G New Deal(Infrastructure) Policy Fund No.1(*3) Securities investment and others 70.0 70.0 Korea December 31 Held by Woori bank and Woori Investment Bank Co., Ltd. (*6) Woori Global Development Infrastructure Synergy Company Private Placement Investment Trust No.1 (*3) Securities investment and others 100.0 100.0 Korea December 31 Woori G NorthAmerica Infra Private Placement Investment Trust No. 1 (*3) Securities investment and others 100.0 100.0 Korea December 31 Woori G Infrastructure New Deal Specialized Investment Private Equity Investment Trust No. 1 (*3) Securities investment and others 100.0 100.0 Korea December 31 Woori G General Type Private Real Estate Investment Trust No.2 (*3) Securities investment and others 30.1 30.1 Korea December 31 Woori G ESG Infrastructure Development General Type Private Investment Trust No.1 (*3) Securities investment and others 100.0 100.0 Korea December 31 Held by Woori bank (*6) Woori G WooriBank Partners General Type Private Investment Trust No.1 (*3) Securities investment and others 92.6 92.6 Korea December 31 Woori G General Type Private Real Estate Investment Trust No.1 (*3) Securities investment and others 84.3 80.0 Korea December 31 Woori G Global Mid-market Secondary General Type Private Investment Trust No.1 (*3) Securities investment and others 80.0 80.0 Korea December 31 WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 19 - Percentage of ownership (%) Location Financial statements date Subsidiaries Main business December 31, 2023 December 31, 2022 Woori G Woori Bank Partners Professional Type Private Investment Trust No. 2 (*3) Securities investment and others 90.9 90.9 Korea December 31 Woori G General Type Private Real Estate Investment Trust No.5 (*3) Securities investment and others 87.0 86.8 Korea December 31 Woori G Senior Loan General Type Private Investment Trust No.2(*3) Securities investment and others 50.0 50.0 Korea December 31 Woori G Government Bond MMF C/I (*3) (*5) Securities investment and others - 46.0 Korea - Woori G Japan General Type Private Real Estate Feeder Investment Trust No.1-2 (*3) Securities investment and others 98.8 98.8 Korea December 31 Woori G Japan Blind General Type Private Real Estate Feeder Investment Trust No.1 (*3) Securities investment and others 99.9 99.9 Korea December 31 Woori Short Term Government and Special Bank Bond Active ETF(*3) (*5) Securities investment and others - - Korea - WooriG Clean Energy General Type Private Investment Trust No.2 (*3) Securities investment and others 30.8 - Korea December 31 WooriG Innovation Growth(Infrastructure) General Type Private Investment Trust No.2 (*3) Securities investment and others 46.4 - Korea December 31 Woori Together Institutional USD MMF No.1 C-F(*3) Securities investment and others 63.4 - Korea December 31 Woori G ESG Infrastructure Development General Type Private Investment Trust No.2 (*3) Securities investment and others 50.0 - Korea December 31 Woori Dongbu Underground Expressway General type Private Special Asset Investment Trust (*3) Securities investment and others 40.0 - Korea December 31 Held by Woori Bank and Woori Financial Capital Co., Ltd.(*6) Woori G Renewable New Deal Fund No.1 (*3) Securities investment and others 60.0 60.0 Korea December 31 Woori G Equity Investment General Type Private Investment Trust No.1 (*3) Securities investment and others 100.0 100.0 Korea December 31 Woori Busan Logistics Infra Private Placement Special Asset Investment Trust (*3) Securities investment and others 100.0 100.0 Korea December 31 Held by Woori Financial Capital Co., Ltd.(*6) Woori G Japan Private Placement Real Estate Feeder Investment Trust No.1-1 (*3) Securities investment and others 63.2 63.2 Korea December 31 Held by Woori Bank, Woori Global Asset Management Co., Ltd. (*6) Woori G General Type Private Real Estate Investment Trust No.6 (*3) Securities investment and others 85.8 - Korea December 31 Held by Woori Bank, Woori Card Co., Woori Financial Capital Co., Ltd. and Woori Investment Bank Co., Ltd. (*6) Woori FG Digital Investment Fund 1st (*3) Securities investment and others 100.0 100.0 Korea December 31 WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 20 - Percentage of ownership (%) Location Financial statements date Subsidiaries Main business December 31, 2023 December 31, 2022 Held by Woori G Japan Private Placement Real Estate Feeder Investment Trust No.1-1 and Woori G Japan Investment Trust No. 1-2(*6) Woori G Japan Private Placement Real Estate Master Investment Trust No.1 (*3)(*8) Securities investment and others 100.0 100.0 Korea December 31 Held by Woori Financial Capital Co., Ltd. and Woori Investment Bank Co., Ltd. (*6) Woori G Japan Private Placement Real Estate Master Investment Trust No.2-1 (*3) Securities investment and others 100.0 100.0 Korea December 31 Held by Woori Bank and Woori Private Equity Asset Management Co., Ltd. (*6) Woori Corporate Turnaround No.1 Private Equity Fund (*3) Securities investment and others 36.4 - Korea December 31 Held by Woori G Japan Blind General Type Private Real Estate Feeder Investment Trust No.1 and Woori G Japan General Type Private Real Estate Feeder Investment Trust No.2-1(*6) Woori G Japan Private Placement Real Estate Master Investment Trust No.2 (*3)(*8) Securities investment and others 100.0 100.0 Korea December 31 Held by Woori G Japan Private Placement Real Estate Master Investment Trust No.1 GK OK Chatan (*3) Other financial services 99.9 99.9 Japan October 31 (*9) Held by Woori G Japan Blind General Type Private Real Estate Feeder Investment Trust No.1 (*6) Woori G Private Placement Investment Trust No. 3 (*3)(*8) Securities investment and others 76.5 76.5 Korea December 31 Held by Woori G Private Placement Investment Trust No. 3 GK Woorido(*3) Other financial services 100.0 100.0 Japan September 30 (*9) Held by Woori G Infrastructure New Deal General Type Private Investment Trust (*6) Woori Seoul- Chuncheon Highway Private Placement Special Asset Investment Trust No.1 (*3) Securities investment and others 48.0 48.0 Korea December 31 (*1) Comprehensive stock exchange in Woori Investment Bank Co., Ltd., additional investment in Woori Asset Trust Corp. and new acquisition of Woori Venture Partners occurred during the year ended December 31, 2023. (*2) The entity is a structured entity for the purpose of asset securitization. Although the Group is not a majority shareholder, the Group 1) has the power over the investee, 2) is exposed to or has rights to variable returns from its involvement with the investee, and 3) has the ability to use its power to affect its returns. (*3) The entity is a structured entity for the purpose of investment in securities. Although the Group is not a majority shareholder, the Group 1) has the power over the investee, 2) is exposed to or has rights to variable returns from its involvement with the investee, and 3) has the ability to use its power to affect its returns. (*4) The entity is a ‘money trust’ under the Financial Investment Services and Capital Markets Act. Although the Group is not a majority shareholder, the Group 1) has the power over the investee, 2) is exposed to or has rights to variable returns from its involvement with the investee, and 3) has the ability to use its power to affect its returns. WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 21 - (*5) Companies are excluded from the consolidation as of December 31, 2023. (*6) Determined that the Group controls the investees, considering the Group 1) has the power over the investee, 2) is exposed to or has rights to variable returns from its involvement with the investee, and 3) has the ability to use its power to affect its returns, by two or more subsidiaries’ investment or operation. (*7) The Russia – Ukraine conflict has been escalated in February 2022, and international sanctions were imposed on Russia. Due to the sanctions, the Group may experience situations such as a decrease in value of financial assets or operating assets owned by the Group regarding the conflict, an increase in receivable payment terms, limitation to transfer funds, decrease in the profit. As of December 31, 2023, the Group expects such conflict and sanctions would have financial impacts on the business of AO Woori Bank, one of the subsidiaries, in the future. However, the Group cannot reasonably predict the financial impacts. (*8) As a master-feeder fund, it is the percentage of the feeder fund’s ownership in the master fund. (*9) As the financial statements for the end of the reporting period were not available, the most recent financial statements available from the date of settlement were used. (3) The Group has not consolidated the following entities as of December 31, 2023 and 2022 despite having more than 50% ownership interest: As of December 31, 2023 Subsidiaries Location Main Business Percentage of ownership (%) Mirae Asset Maps Clean Water Private Equity Investment Trust 7th (*1) Korea Securities Investment 59.7 Kiwoom Yonsei Private Equity Investment Trust (*1) Korea Securities Investment 88.9 IGIS Europe Private Placement Real Estate Fund No. 163-2 (*2) Korea Securities Investment 97.9 IGIS Global Private Placement Real Estate Fund No. 148-1 (*1) Korea Securities Investment 75.0 IGIS Global Private Placement Real Estate Fund No. 148-2 (*1) Korea Securities Investment 75.0 Mirae Asset Seoul Ring Expressway Private Special Asset Fund No. 1 (*1) Korea Securities Investment 66.7 Hangkang Sewage Treatment Plant Fund (*1) Korea Securities Investment 55.6 Korea Investment Pocheon Hwado Expressway Professional Investment Fund (*1) Korea Securities Investment 55.1 Midas Global Private Placement Real Estate Investment Trust No. 7-2 (*1) Korea Securities Investment 58.3 Together-Korea Government Private Pool Private Securities Investment Trust No.3 (*3) Korea Securities Investment 100.0 INMARK France Private Placement Investment Trust No. 18-1 (*1) Korea Securities Investment 93.8 Kiwoom Vibrato Private Placement Investment Trust 1-W(EUR) (*2) Korea Securities Investment 99.5 KOTAM Global Infra Private Fund 1-4 (*2) Korea Securities Investment 99.7 UBSHana Class 1 Special Asset Investment Trust 3 Class C 2 (*1) Korea Securities Investment 51.0 Consus GyeongJu Green Specialized Private Special Asset Investment Trust 1 (*1) Korea Securities Investment 50.0 Kiwoom Harmony Private Placement Investment Trust No. 3 (*1) Korea Securities Investment 77.3 Consus Solar Energy Private Placement Investment Truns No.1(*1) Korea Securities Investment 50.0 IGIS ESG General Private Investment Trust No.1(*1) Korea Securities Investment 60.0 Kiwoom Aurora Geneal Type Private Placement Investment Trust No. 2(*1) Korea Securities Investment 60.0 NH-Amundi WSCP VIII Private Fund 2 (*1) Korea Securities Investment 65.2 AI Partners Global Infrastructure Specialized Privately Placed Feeder Fund Trust No. 2 (*2) Korea Securities Investment 100.0 Hangang new deal infra BTL fund 4 (HNBF4) (*1) Korea Securities Investment 60.0 IGIS Global Private Placement Real Estate Fund No. 316-1(*2) Korea Securities Investment 99.3 INMARK Spain Private Placement Real Estate Investment Trust No. 26-2 (*2) Korea Securities Investment 97.7 Woori Asset Global Partnership Fund No.5(*4) Korea Securities Investment 57.7 Kiwoom Harmony Private Placement Investment Trust No. 6 (*1) Korea Securities Investment 76.9 Rifa Qualified Investors Private Real Estate Investment Trust No.40 (*2) Korea Securities Investment 55.0 (*1) The Group does not have power over the discretionary fund because the fund manager has the sole authority to decide the relevant activities of the investee. The fund manager’s delegated power is exercised not only for the Group, but also for other investors as well. The Group does not have the power over the fund’s activities even though it holds more than 50% of ownership interest. (*2) The investment target for the fund was determined in advance, and the disposition of investment assets cannot be determined by the Group, and as a fund of funds, the Group does not have the power to participate in decision-making regarding investment assets in parent funds. The Group does not have the power over the fund’s activities even though it holds more than 50% of ownership interest. (*3) The Group does not have power over the stock market stabilization fund as the fund’s relevant activities are determined by the management committee, over which the Group does not have substantial control. The Group does not have the power over the fund’s activities even though it holds more than 50% of ownership interest. (*4) In this fund, one of the parties holds substantive removal rights and can remove the collective investment business operator without any cause. Consequently, the Group have no controls as it exercises decision-making rights as agent. WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 22 - As of December 31, 2022 Subsidiaries Location Main Business Percentage of ownership (%) Mirae Asset Maps Clean Water Private Equity Investment Trust 7th (*1) Korea Securities Investment 57.6 Kiwoom Yonsei Private Equity Investment Trust (*1) Korea Securities Investment 88.9 IGIS Europe Private Placement Real Estate Fund No. 163-2 (*2) Korea Securities Investment 97.8 IGIS Global Private Placement Real Estate Fund No. 148-1 (*1) Korea Securities Investment 75.0 IGIS Global Private Placement Real Estate Fund No. 148-2 (*1) Korea Securities Investment 75.0 Mirae Asset Seoul Ring Expressway Private Special Asset Fund No. 1 (*1) Korea Securities Investment 66.7 Hangkang Sewage Treatment Plant Fund (*1) Korea Securities Investment 55.6 Korea Investment Pocheon Hwado Expressway Professional Investment Fund (*1) Korea Securities Investment 55.2 Midas Global Private Placement Real Estate Investment Trust No. 7-2 (*1) Korea Securities Investment 58.3 Together-Korea Government Private Pool Private Securities Investment Trust No.3 (*3) Korea Securities Investment 100.0 INMARK France Private Placement Investment Trust No. 18-1 (*1) Korea Securities Investment 93.8 Kiwoom Vibrato Private Placement Investment Trust 1-W(EUR) (*2) Korea Securities Investment 99.5 KOTAM Global Infra Private Fund 1-4 (*2) Korea Securities Investment 99.7 UBSHana Class 1 Special Asset Investment Trust 3 Class C 2 (*1) Korea Securities Investment 51.0 Consus GyeongJu Green Specialized Private Special Asset Investment Trust 1 (*1) Korea Securities Investment 50.0 Kiwoom Harmony Private Placement Investment Trust No. 3 (*1) Korea Securities Investment 77.4 Consus Solar Energy Private Placement Investment Truns No.1(*1) Korea Securities Investment 50.0 IGIS ESG General Private Investment Trust No.1(*1) Korea Securities Investment 60.0 Kiwoom Aurora Geneal Type Private Placement Investment Trust No. 2(*1) Korea Securities Investment 60.0 NH-Amundi WSCP VIII Private Fund 2 (*1) Korea Securities Investment 65.2 AI Partners Global Infrastructure Specialized Privately Placed Feeder Fund Trust No. 2 (*2) Korea Securities Investment 100.0 Hangang new deal infra BTL fund 4 (HNBF4) (*1) Korea Securities Investment 60.0 Rifa Qualified Investors Private Real Estate Investment Trust No.40 (*2) Korea Securities Investment 55.0 (*1) The Group does not have power over the discretionary fund because the fund manager has the sole authority to decide the relevant activities of the investee. The fund manager’s delegated power is exercised not only for the Group, but also for other investors as well. The Group does not have the power over the fund’s activities even though it holds more than 50% of ownership interest. (*2) The Group does not have power over the fund of funds because the Group cannot decide the relevant activities of the fund through the related contract. The Group does not have the power over the fund’s activities even though it holds more than 50% of ownership interest. (*3) The Group does not have power over the stock market stabilization fund as the fund’s relevant activities are determined by the management committee, over which the Group does not have substantial control. The Group does not have the power over the fund’s activities even though it holds more than 50% of ownership interest. WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 23 - (4) The summarized financial information of the major subsidiaries are as follows. The financial information of each subsidiary was prepared on the basis of consolidated financial statements. (Unit: Korean Won in millions): As of and for the year ended December 31, 2023 Subsidiaries Assets Liabilities Operating revenue Net income (loss) attributable to owners Comprehensiv e income (loss) attributable to owners Woori Bank 458,017,067 431,313,615 37,719,811 2,505,587 3,203,099 Woori Card Co., Ltd. 17,491,193 14,830,408 2,099,755 110,998 85,647 Woori Financial Capital Co., Ltd. 12,417,338 10,796,683 1,538,360 127,836 125,562 Woori Investment Bank Co., Ltd. 6,375,625 5,273,890 429,764 (53,374) (50,735) Woori Asset Trust Co., Ltd. 337,976 79,747 129,982 32,297 31,849 Woori Savings Bank 1,938,948 1,759,489 133,872 (49,139) (48,974) Woori Financial F&I Co., Ltd. 877,702 673,265 31,290 3,866 3,858 Woori Asset Management Corp. 161,868 32,780 41,311 6,408 6,267 Woori Venture Partners Co., Ltd.(*) 328,782 30,190 14,676 3,929 5,484 Woori Global Asset Management Co., Ltd. 37,512 13,526 13,857 (3,913) (3,913) Woori Private Equity Asset Management Co., Ltd 96,006 4,418 10,216 1,960 1,826 Woori Credit Information Co., Ltd. 45,662 7,981 43,774 5,014 4,626 Woori Fund Service Co., Ltd. 27,526 2,758 17,059 3,539 3,539 Woori FIS Co., Ltd. 80,563 32,304 339,163 (7,511) (9,214) Woori Finance Research Institute Co., Ltd. 6,444 2,603 7,792 72 (11) (*) Additional investment occurred and added it as a consolidated subsidiary during the year ended December 31, 2023. As of and for the year ended December 31, 2022 Subsidiaries Assets Liabilities Operating revenue Net income (loss) attributable to owners Comprehensive income (loss) attributable to owners Woori Bank 443,340,979 417,583,793 38,656,623 2,892,165 2,651,873 Woori Card Co., Ltd. 16,118,967 13,692,456 1,845,296 204,385 199,397 Woori Financial Capital Co., Ltd. 12,581,473 11,040,754 1,323,574 183,328 189,765 Woori Investment Bank Co., Ltd. 5,657,191 4,982,410 406,157 91,794 92,379 Woori Asset Trust Co., Ltd. 322,098 94,573 137,114 60,319 60,316 Woori Savings Bank 1,786,495 1,556,679 110,868 10,607 10,998 Woori Asset Management Corp. 185,389 62,568 35,019 1,259 1,314 Woori Financial F&I Co., Ltd. 336,141 135,562 8,086 867 867 Woori Credit Information Co., Ltd. 42,832 9,240 38,549 1,784 2,083 Woori Fund Service Co., Ltd. 25,094 2,691 16,337 3,917 3,917 Woori Private Equity Asset Management Co., Ltd 94,434 4,672 7,830 1,902 1,872 Woori Global Asset Management Co., Ltd. 34,988 7,090 13,711 211 211 Woori FIS Co., Ltd. 112,117 54,645 296,235 1,069 11,559 Woori Finance Research Institute Co., Ltd. 6,456 2,604 7,006 46 245 WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 24 - (5) The financial support that the Group provides to consolidated structured entities is as follows: - Structured entity for asset securitization The structured entity which is established for the purpose of securitization of project financing loans, corporate bonds, and other financial assets. The Group is involved with the structured entity through provision of credit facility over asset-backed commercial papers issued by the entity, originating loans directly to the structured entity, or purchasing 100% of the subordinated debts issued by the structured entity. - Structured entity for the investments in securities The structured entity is established for the purpose of investments in securities. The Group acquires beneficiary certificates through its contribution of funding to the structured entity by the Group, and it is exposed to the risk that it may not be able to recover its fund depending on the result of investment performance of asset managers of the structured entity. - Money trust under the Financial Investment Services and Capital Markets Act The Group provides with financial guarantee of principal and interest or solely principal to some of its trust products. Due to the financial guarantees, the Group may be obliged when the principal and interest or principal of the trust product sold is short of the guaranteed amount depending on the result of investment performance of the trust product. As of December 31, 2023 and 2022, the Group provides 2,445,644 million Won and 231,309 million Won of credit facilities, respectively, for the structured entities mentioned above. As of December 31, 2023 and 2022, the purchase commitment amounts to 2,848,921 million Won and 2,545,164 million Won, respectively. (6) The Group has entered into various agreements with structured entities such as asset securitization, structured finance, investment fund, and trust contract. The characteristics of interests and the nature of risks related to unconsolidated structured entities over which the Group does not have control in accordance with K-IFRS 1110 are as follows: The interests in unconsolidated structured entities that the Group hold are classified into asset securitization, structured finance, investment fund and real-estate trust, based on the nature and the purpose of each structured entity. Unconsolidated structured entities classified as ‘asset securitization’ are entities that issue asset-backed securities, pay the principal and interest or distributes dividends on asset-backed securities through borrowings or profits from the management, operation and sale of securitized assets. The Group has been purchasing commitments of asset-backed securities or issuing asset-backed securities through credit grants, and recognizes related interest or fee revenue. There are entities that provide additional funding and conditional debt acquisition commitments before the Group’s financial support, but the Group is still exposed to losses arising from the purchase of financial assets issued by the structured entities when it fails to renew the securities. Unconsolidated structured entities classified as ‘structured finance’ include real estate project financing investment vehicle, social overhead capital companies, and special purpose companies for ship (aircraft) financing. Each entity is incorporated as a separate company with a limited purpose in order to efficiently pursue business goals and the fund is raised by equity investment or loans from financial institutions and participating institutions. ‘Structured financing’ is a financing method for large-scale risky business, with investments made based on feasibility of the specific business or project, instead of credit of business owner or physical collaterals. The investors receive profits from the operation of the business. The Group recognizes interest revenue, profit or loss from assessment or transactions of financial instruments, or dividend income. With regard to uncertainties involving structured financing, there are entities that provide financial support such as additional fund, guarantees and prioritized credit grants prior to the Group’s intervention, but the Group is exposed to possible losses due to loss of principal from reduction in investment value or irrecoverable loans arising from failure to collect scheduled cash flows and cessation of projects. WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 25 - Unconsolidated structured entities classified as ‘investment funds’ include investment trusts and private equity funds. An investment trust orders the investment and operation of funds to the trust manager in accordance with trust contract with profits distributed to the investors. Private equity funds finances money required to acquire equity securities to enable direction of management and/or improvement of ownership structure, with profit distributed to the investors. The Group recognizes pro rata amount of dividend income as an investor in the same way as ‘structured finance’, and may be exposed to losses due to reduction in investment value. Investments in MMF(Money Market Funds) as of December 31, 2023 and 2022 are 1,451,874 million Won and 875,470 million Won, respectively, and there is no additional commitments for MMF. ‘Real estate trust’ is to be entrusted the underlying property for the purpose of managing, disposing, operating or developing from the consignor who owns the property and distributes the proceeds achieved through the trust to the beneficiary. When the consignee does not fulfill his or her important obligations in the trust contract or it is, in fact, difficult to run the business, the Group may be exposed to the threat of compensating the loss. The total assets of the unconsolidated structured entity held by the Group, the carrying amount of the items recognized in the consolidated financial statements, the maximum loss exposure, and the losses from the unconsolidated structured entity are as follows. The maximum loss exposure includes the amount of investment recognized in the consolidated financial statements and the amount that is likely to be confirmed in the future when satisfies certain conditions by contracts such as purchase commitments, credit offerings. (unit : Korean Won in millions)) December 31, 2023 Asset securitization Structured Finance Investment Fund Real-estate trust Total asset of the unconsolidated structured entities 14,595,681 99,568,859 189,034,319 1,604,210 Assets recognized in the consolidated financial statements related to the unconsolidated structured entities 9,256,063 5,414,037 6,884,658 93,222 Financial assets at FVTPL 205,449 118,026 6,000,877 8,297 Financial assets at FVTOCI 2,802,592 43,696 - - Financial assets at amortized cost 6,248,022 5,252,191 66 84,925 Investments in joint ventures and associates - - 881,531 - Derivative assets - 124 2,184 - Liabilities recognized in the consolidated financial statements related to the unconsolidated structured entities 248 3,251 2,006 28,838 Derivative liabilities - 1,243 2,006 - Other liabilities (provisions) 248 2,008 - 28,838 The maximum exposure to risks 9,333,448 6,444,559 11,069,599 206,651 Investment assets 9,256,063 5,414,037 6,884,658 93,222 Purchase commitment - - 4,181,631 - Credit offerings and others 77,385 1,030,522 3,310 113,429 Loss recognized on unconsolidated structured entities 149 83,885 63,372 19,337 WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 26 - (unit : Korean Won in millions)) December 31, 2022 Asset securitization Structured Finance Investment Fund Real-estate trust Total asset of the unconsolidated structured entities 14,856,750 82,724,618 132,264,383 1,316,930 Assets recognized in the consolidated financial statements related to the unconsolidated structured entities 8,051,144 5,537,836 4,964,712 40,073 Financial assets at FVTPL 258,552 6,642 4,397,416 10,480 Financial assets at FVTOCI 3,213,331 45,735 - - Financial assets at amortized cost 4,579,261 5,485,336 31,124 29,593 Investments in joint ventures and associates - - 535,427 - Derivative assets - 123 745 - Liabilities recognized in the consolidated financial statements related to the unconsolidated structured entities 824 6,606 2,091 5,760 Derivative liabilities 729 4,975 2,091 - Other liabilities (provisions) 95 1,631 - 5,760 The maximum exposure to risks 8,153,111 6,086,831 9,322,308 92,856 Investment assets 8,051,144 5,537,836 4,964,712 40,073 Purchase commitment - - 4,352,518 - Credit offerings and others 101,967 548,995 5,078 52,783 Loss recognized on unconsolidated structured entities - 17,388 113,976 1,040 (7) As of December 31, 2023 and 2022, the share of non-controlling interests on the net income and equity of subsidiaries in which non-controlling interests are significant are as follows: (Unit: Korean Won in millions): 1) Accumulated non-controlling interests at the end of the reporting period December 31, 2023 December 31, 2022 Woori Bank (*1) 1,546,447 2,344,816 Woori Investment Bank Co., Ltd. (*2) - 283,221 Woori Asset Trust Co., Ltd. (*3) 12,517 78,434 Woori Asset Management Corp 35,638 34,073 PT Bank Woori Saudara Indonesia 1906 Tbk 103,176 92,118 Wealth Development Bank 21,142 20,759 PT Woori Finance Indonesia Tbk. 13,631 13,964 (*1) Hybrid securities issued by Woori Bank (*2) The non-controlling interests decreased by 280,604 million Won in accordance with additional investment during the year ended December 31, 2023. (*3) The non-controlling interests decreased by 71,240 million Won in accordance with additional investment during the year ended December 31, 2023. WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 27 - 2) Net income attributable to non-controlling interests For the years ended December 31 2023 2022 Woori Bank (*) 95,637 113,995 Woori Investment Bank Co., Ltd. 5,687 38,319 Woori Asset Trust Co., Ltd. 5,720 18,074 Woori Asset Management Corp 1,603 290 Woori Venture Partners Co., Ltd. 1,391 - PT Bank Woori Saudara Indonesia 1906 Tbk 9,521 10,806 Wealth Development Bank (68) 401 PT Woori Finance Indonesia Tbk. 1,067 379 (*) Distribution of the hybrid securities issued by Woori Bank 3) Dividends to non-controlling interests (*) Distribution of the hybrid securities issued by Woori Bank For the years ended December 31 2023 2022 Woori Bank (*) 95,637 113,995 Woori Investment Bank Co., Ltd. 8,302 7,219 Woori Asset Trust Co., Ltd 365 365 PT Bank Woori Saudara Indonesia 1906 Tbk 2,802 2,330 PT Woori Finance Indonesia Tbk. 138 - Others 40 - WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 28 - 2. BASIS OF PREPARATION AND MATERIAL ACCOUNTING POLICIES (1) Basis of presentation The Group maintains its accounting records in Korean won and prepares statutory financial statements in the Korean language (Hangul) in accordance with International Financial Reporting Standards as adopted by the Republic of Korea (K-IFRS). The accompanying 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 Grou’'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 K-IFRS. These are the standards, subsequent amendments and related interpretations issued by the International Accounting Standards Board (IASB) that have been adopted by the Republic of Korea. The principal accounting policies applied in the preparation of these consolidated financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. The consolidated financial statements, as described in following paragraphs of accounting policy, are prepared at the end of each reporting period in historical cost basis, except for certain non-current assets and financial assets that are either revalued or measured in fair value. Historical cost is generally measured at the fair value of consideration given to acquire assets. Meanwhile, the consolidated financial statements of the Group were initially approved by the Board of Directors on February 6, 2024, revised and approved on February 9, 2024 and the final approval will be made in the annual general shareholders’ meeting on March 22, 2024. 1) The standards and interpretations that are newly adopted by the Group during the current period, and the changes in accounting policies thereof are as follows: i) Amendments to K-IFRS 1001 ‘Presentation of Financial Statements’ – Disclosure of Accounting Policies The amendments to Korean IFRS 1001 define and require entities to disclose their material accounting policy information (being information that, when considered together with other information included in an entity’s financial statements, can reasonably be expected to influence decisions that the primary users of financial statements make on the basis of those financial statements) statements). These amended do not have a significant impact on the consolidated financial statements. ii) Amendments to K-IFRS 1008 ‘Accounting Policies, Changes in Accounting Estimates and Errors’ - Definition of Accounting Estimates The amendments have defined accounting estimates and clarified how to distinguish them from changes in accounting policies. These amended do not have a significant impact on the consolidated financial statements. iii) Amendments to K-IFRS 1001 ‘Presentation of Financial Statements’ - Disclosure of valuation gains or losses on financial liabilities with condition to adjust exercise price The amendments require disclosure of valuation gains or losses (limited to those recognized in the profit or loss) of the conversion options or warrants (or financial liabilities including them), if all or part of the financial instrument with exercise price that is adjusted depending on the issuer’s share price change is classified as financial liability as defined in paragraph 11 (2) of K-IFRS 1032. These amended do not have a significant impact on the consolidated financial statements. WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 29 - iv) Amendments to K-IFRS 1012 ‘Income Taxes’ - deferred tax related to assets and liabilities arising from a single transaction Additional phrase 'the temporary difference to be added and the temporary difference to be deducted do not occur in the same amount' has been added to initial recognition exception for a transaction in which an asset or liability is initially recognized. These amended do not have a significant impact on the consolidated financial statements. v) New Standard: K-IFRS 1117 ‘Insurance Contract’ K-IFRS 1117 Insurance Contracts replaces K-IFRS 1104 Insurance Contracts. This Standard estimates future cash flows of an insurance contract and measures insurance liabilities using discount rates applied with assumptions and risks at the measurement date. The entity recognizes insurance revenue on an accrual basis including services (insurance coverage) provided to the policyholder by each annual periods. In addition, investment components (Refunds due to termination/maturity) repaid to a policyholder even if an insured event does not occur, are excluded from insurance revenue, and insurance financial income or expense and the investment income or expense are presented separately to enable users of the information to understand the sources of income or expenses. This standard does not have a significant impact on the consolidated financial statements. vi) K-IFRS 1012 ‘Income Taxes’ - International Tax Reform – Pillar Two Model Rules The amendments provide a temporary relief from the accounting for deferred taxes arising from legislation enacted to implement the Pillar Two model rules, which aim to reform international corporate taxation for multinational enterprises, and require disclosure of related current tax effects, etc. The amendments do not have a significant impact on the financial statements. The Group applies the exception to recognizing and disclosing information about deferred tax assets and liabilities related to Pillar Two income taxes. Since the Pillar Two legislation is scheduled to be effective from January 1, 2024, the Group has no current tax expense related to Pillar Two. The Group is in review for the impact of these amendments on the financial statements and does not expect that the impact will be significant. 2) The details of K-IFRSs that have been issued and published as of December 31,2023 but have not yet reached the effective date, and which the Group have not been early adopted by the Group are as follows: i) Amendments to K-IFRS 1001 ‘Presentation of Financial Statements’ - Classification of Liabilities as Current or Non-current, Non-current Liabilities with Covenants The amendments clarify that the classification of liabilities as current or non-current is based on rights that are in existence at the end of the reporting period and specify that classification is unaffected by expectations about whether an entity will exercise its right to defer settlement of a liability, explain that rights are in existence if covenants are complied with at the end of the reporting period and introduce a definition of ‘settlement’ to make it clear that settlement refers to the transfer to the counterparty of cash, equity instruments, other assets or services. The amendments specify that only covenants that an entity is required to comply with on or before the end of the reporting period affect the entity’s right to defer settlement of liability for at least 12 months after the reporting date. Such covenants affect whether the right exists at the end of the reporting period, even if compliance with the covenant is assessed only after the reporting date. The amendments also specify that the right to defer settlement is not affected if an entity only has to comply with a covenant after the reporting period. However, if the entity’s right to defer settlement of liability is subject to the entity complying with covenants within 12 months after the WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 30 - reporting period, an entity discloses information that enables users of financial statements to understand the risk of the liabilities becoming repayable within 12 months after the reporting period. This would include information about the covenants (including the nature of the covenants and when the entity is required to comply with them), the carrying amount of related liabilities and the facts and circumstances, if any, that indicate that the entity may have difficulties complying with the covenants. The amendments should be applied for annual periods beginning on or after January 1, 2024, and earlier application is permitted. The Group does not expect that these amendments have a significant impact on the financial statements. ii) Amendments to K-IFRS 1007 ‘Statement of Cash Flows’, K-IFRS 1107 ‘Financial Instruments: Disclosures’ – Supplier finance arrangements When applying supplier finance arrangements, an entity shall disclose information about its supplier finance arrangements that enables users of financial statements to assess the effects of those arrangements on the entity’s liabilities and cash flows and on the entity’s exposure to liquidity risk. The amendments should be applied for annual periods beginning on or after January 1, 2024, and earlier application is permitted. The Group does not expect that these amended will have a significant impact on the financial statements. iii) Amendments to K-IFRS 1116 ‘Leases’ - Lease Liability in a Sale and Leaseback When subsequently measuring lease liabilities arising from a sale and leaseback, a seller-lessee shall determine lease payments or revised lease payments in a way that the seller-lessee would not recognize any amount of the gain or loss that relates to the right of use retained by the seller-lessee. The amendments should be applied for annual periods beginning on or after January 1, 2024, and earlier application is permitted. The Group does not expect that these amendments have a significant impact on the financial statements. iv) Amendments to K-IFRS 1001 ‘Presentation of Financial Statements’ – Disclosure of Cryptographic Assets The amendments require for an additional disclosure if an entity holds cryptographic assets, or holds cryptographic assets on behalf of the customer, or issues cryptographic assets. The amendments should be applied for annual periods beginning on or after January 1, 2024, and earlier application is permitted. The Group does not expect that these amendments will have a significant impact on the financial statements. The above enacted or amended standards will not have a significant impact on the Group. (2) Basis of consolidated financial statement presentation The consolidated financial statements consist of the financial statements of the parent company and the entities (including structured entities) controlled by the parent company (or its subsidiaries, which is the “Group”). Control is achieved where the Group 1) has the power over the investee, 2) is exposed, or has rights, to variable returns from its involvement with the investee, and 3) able to use its power to affect its returns. The Group reassesses whether it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control listed above. When the Group has less than most of the voting rights of an investee, it has power over the investee when the voting rights are sufficient to give it the practical ability to direct the relevant activities of the investee unilaterally. The Group considers all relevant facts and circumstances in assessing whether the Group's voting rights in an investee are enough to give it power, including: - The relative size of the Group's holding of voting rights and dispersion of holdings of the other vote holders; - Potential voting rights held by the Group, other vote holders or other parties; - Rights arising from other contractual arrangements; WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 31 - - Any additional facts and circumstances that indicate that the Group has, or does not have, the current ability to direct the relevant activities at the time that decisions need to be made, including voting patterns at previous shareholders' meetings. Income and expenses of subsidiaries acquired or disposed of during the year are included in the consolidated statement of comprehensive income from the date the Group gains control until the date when the Group ceases to control the subsidiary. The carrying amount of the non-controlling interest after the acquisition is the amount initially recognized plus the amount of proportionate interest of the non-controlling interest in the changes in equity since the acquisition. Total comprehensive income of subsidiaries is attributed to the owner of the Group and to the non-controlling interests even if this results in the non-controlling interests having a negative (-) balance. When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with the Group’s accounting policies. All intra-group transactions and, related assets and liabilities, income and expenses are eliminated in full on consolidation. Changes in the Group’s ownership interests in subsidiaries that do not result in the Group losing control over the subsidiaries are accounted for as equity transactions. The carrying amount of the Group’s interests and the non-controlling interests are adjusted to reflect the changes in their relative interests in the subsidiaries. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognized directly in equity and attributed to the owner of the parent company. When the Group loses control of a subsidiary, a gain or loss on disposal is calculated as the difference between (i) the aggregate of the fair value of the consideration received and the fair value of any retained interest and (ii) the previous carrying amount of the assets (including goodwill), and liabilities of the subsidiary and any non-controlling interests. When assets of the subsidiary are carried at revalued amounts or fair values and the related cumulative gain or loss has been recognized in other comprehensive income and accumulated in equity, the amounts previously recognized in other comprehensive income and accumulated in equity are accounted for as if the Group had directly disposed of the relevant assets (i.e. reclassified to profit or loss or transferred directly to retained earnings). The fair value of any investment retained in the former subsidiary at the date when control is lost is recognized as the fair value on initial recognition for subsequent accounting under K-IFRS 1109 Financial Instruments or, when applicable, the cost on initial recognition of an investment in an associate or a joint venture. (3) Business combinations Acquisitions of subsidiaries and businesses are accounted for using the acquisition method. The consideration transferred in a business combination is measured as the sum of the acquisition-date fair values of the assets transferred by the Group in exchange for control of the acquiree, liabilities assumed by the Group for the former owners of the acquiree and the equity interests issued by the Group. Acquisition-related costs are generally recognized in profit or loss as incurred. At the acquisition date, the acquiree’s identifiable acquires assets, liabilities and contingent liabilities are recognized at their fair value, except for the followings: - Deferred tax assets or liabilities and assets or liabilities related to employee benefit arrangements are recognized and measured in accordance with K-IFRS 1012 Income Taxes and K-IFRS 1019 Employee Benefits, respectively; - Liabilities or equity instruments related to share-based payment arrangements of the acquiree or share-based payment arrangements of the Group entered into to replace share-based payment arrangements of the acquiree are measured in accordance with K-IFRS 1102 Share-based Payment at the acquisition date; and WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 32 - - Non-current assets (or disposal groups) that are classified as held for sale are measured in accordance with K-IFRS 1105 Non-current Assets Held for Sale and Discontinued Operations Any excess of the sum of the consideration transferred, the amount of any non-controlling interest in the acquiree and the fair value of the Group’s previously held equity interest (if any) in the acquiree over the net of identifiable assets and liabilities assumed of the acquiree at the acquisition date is recognized as goodwill. If, after reassessment, the Group’s interest in the fair value of the acquiree’s identifiable net assets exceeds the sum of the consideration transferred, the amount of any non-controlling interest in the acquiree and the fair value of the acquirer’s previously held equity interest in the acquiree (if any), the excess is recognized immediately in net income as a bargain purchase gain. The subsidiary's non-controlling interests are identified separately from the Group's equity. If the element of the non-controlling interest in the acquiree is the current interest at the acquisition date and the holder is entitled to a proportional share of the entity's net assets, the non-controlling interest can be measured in 1) fair value or 2) proportionate share of the current equity instrument of the amount recognized for the acquiree's identifiable net assets at the acquisition date. The selection of these metrics is made for each acquisition transaction. All other non-controlling interests are measured at fair value at the acquisition date. The carrying amount of the non-controlling interest after acquisition reflects the proportional interest of the non-controlling interest in changes in equity after acquisition in the initial recognition amount. Even if the non-controlling interest is a negative (-) balance, total comprehensive income is attributed to the non- controlling interest. When the consideration transferred by the Group in a business combination includes assets or liabilities resulting from a contingent consideration arrangement, the contingent consideration is measured at its acquisition-date fair value and included as part of the consideration transferred in a business combination. Changes in the fair value of the contingent consideration that qualify as measurement period adjustments are adjusted retrospectively, with corresponding adjustments against goodwill. Measurement period adjustments are adjustments that arise from additional information obtained during the ‘measurement period’ (which cannot exceed one year from the acquisition date) about facts and circumstances that existed at the acquisition date. The subsequent accounting for changes in the fair value of the contingent consideration that do not qualify as measurement period adjustments depends on how the contingent consideration is classified. Contingent consideration that is classified as equity is not remeasured at subsequent reporting dates and its subsequent settlement is accounted for within equity. Contingent consideration other than the above is remeasured at subsequent reporting dates as appropriate, with the corresponding gain or loss being recognized in profit or loss. When a business combination is achieved in stages, the Group's previously held equity interest in the acquiree is remeasured at fair value at the acquisition date (i.e., the date when the Group obtains control) and the resulting gain or loss, if any, is recognized in net income(or other comprehensive income, if applicable). Amounts arising from changes in value of interests in the acquiree prior to the acquisition date that have previously been recognized in other comprehensive income are recognized, identical to the treatment assuming interests are sold directly. If the initial accounting for a business combination is not completed by the end of the reporting period in which the business combination occurred, the Group reports in consolidated financial statements the provisional amount of items that have not been accounted for. If there is new information about the facts and circumstances that existed as of the acquisition date during the measurement period (see above), the Group retrospectively adjusts the provisional amounts recognized at the acquisition date or recognizes additional assets and liabilities to reflect the information that would have affected the measurement of the amount recognized at the acquisition date if it had already known at the acquisition date. (4) Investments in joint ventures and associates WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 33 - An associate is an entity over which the Group has significant influence, and that is not a subsidiary or a joint venture. Significant influence is the power to participate in making decision on the financial and operating policy of the investee but is not control or joint control over those policies. A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to net assets relating to the arrangement. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require the unanimous consent of the parties sharing control. The net income of current period and the assets and liabilities of the joint ventures and associates are incorporated in these consolidated financial statements using the equity method of accounting, except when the investment is classified as held for sale, in which case it is accounted for in accordance with K-IFRS 1105 Non-current Assets Held for Sale and Discontinued Operations. Under the equity method, an investment in the joint ventures and associates is initially recognized in the consolidated statements of financial position at cost and adjusted thereafter to recognize the Group's share of the net assets of the joint ventures and associates and any impairment. When the Group's share of losses of the joint ventures and associates exceeds the Group's interest in the associate, the Group discontinues recognizing its share of further losses. Additional losses are recognized only to the extent that the Group has incurred legal or constructive obligations or made payments on behalf of the joint ventures and associates. Investment in joint ventures and associates are accounted for and applied with the equity method from the time the investee becomes an associate or a joint venture. Any excess of the cost of acquisition over the Group's share of the net fair value of the identifiable assets, liabilities and contingent liabilities of the joint ventures and associates recognized at the date of acquisition is recognized as goodwill, which is included within the carrying amount of the investment. Any excess of the Group’s share of the net fair value of the identifiable assets, liabilities and contingent liabilities over the cost of acquisition exists after the review, it is recognized immediately in net income. The requirements of K-IFRS 1028 - Investments in Associates and Joint Ventures to determine whether there has been a loss event are applied to identify whether it is necessary to recognize any impairment loss with respect to the Group’s investment in the joint ventures and associates. When necessary, the entire carrying amount of the investment (including goodwill) is tested for impairment in accordance with K-IFRS 1036 - Impairment of Assets as a single asset by comparing its recoverable amount (higher of value in use and fair value less costs to sell) with its carrying amount. Any impairment loss recognized is not allocated to any asset (including goodwill), which forms part of the carrying amount of the investment. Any reversal of that impairment loss is recognized in accordance with K-IFRS 1036 to the extent that the recoverable amount of the investment subsequently increases. The Group ceases to use the equity method from the time it fails meet the definition of an associate or a joint venture. Upon a loss of significant influence over the joint ventures and associates, the Group discontinues the use of the equity method and measures at fair value of any investment that the Group retains in the former joint ventures and associates from the date when the Group loses significant influence. The fair value of the investment is regarded as its fair value on initial recognition as a financial asset in accordance with K-IFRS 1109 Financial Instruments; Recognition and Measurement. The Group recognized differences between the carrying amount and fair value in net income and it is included in determination of the gain or loss on disposal of joint ventures and associates. The Group accounts for all amounts recognized in other comprehensive income in relation to that joint ventures and associates on the same basis as would be required if the joint ventures and associates had directly disposed of the related assets or liabilities. Therefore, if a gain or loss previously recognized in other comprehensive income by an associate or a joint venture would be reclassified to net income on the disposal of the related assets or liabilities, the Group reclassifies the gain or loss from equity to net income as a reclassification adjustment. When the Group’s ownership of interest in an associate or a joint venture decreases but the Group continues to maintain significant influence over an associate or a joint venture, the Group reclassifies to profit or loss the proportion of the gain or loss that had previously been recognized in other comprehensive income relating to that decrease in ownership interest if the gain or loss would be reclassified to profit or loss on the disposal of the related assets or liabilities. Meanwhile, if interest on associate or joint venture meets the definition of non-current asset held for sale, it is accounted for in accordance with K-IFRS 1105. WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 34 - The Group continues to use the equity method when an investment in an associate becomes an investment in a joint venture or an investment in a joint venture becomes an investment in an associate. There is no remeasurement to fair value upon such changes in ownership interests. When the Group transacts with an associate or a joint venture of the Group, profits and losses resulting from the transactions with the associate or joint venture are recognized in the Group's consolidated financial statements only to the extent of interests in the associate or joint venture that are not related to the Group. The Group applies K-IFRS 1109 Financial Instruments, including the impairment requirements, to its long- term investment interests in associates and joint ventures that form part of its net investment without applying the equity method. In addition, when applying K-IFRS 1109 to long-term investments, the Group does not consider adjustments to the carrying amount required by K-IFRS 1028. Examples of such adjustments include an impairment assessment or an adjustment to the carrying amount of the long-term investment interest resulting from the allocation of losses to the investee in accordance with K-IFRS 1028. (5) Investment in joint operation A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the assets, and obligations for the liabilities, relating to the arrangement. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require the unanimous consent of the parties sharing control. When the Group operates as a joint operator, it recognizes in relation to its interest in a joint operation: - its assets, including its share of any assets held jointly; - its liabilities, including its share of any liabilities incurred jointly; - its revenue from the sale of its share of the output arising from the joint operation; - its share of the revenue from the sale of the output by the joint operation; - its expenses, including its share of any expenses incurred jointly. The Group accounts for the assets, liabilities, revenues and expenses that correspond to its interest in a joint operation in accordance with the K-IFRSs applicable to the specific assets, liabilities, revenues and expenses. When the Group enters into a transaction with a joint operation in which it is a joint operator, such as a sale or contribution of assets, it is conducting the transaction with the other parties to the joint operation and, as such, the Group recognizes gains and losses resulting from such a transaction only to the extent of the other parties’ interests in the joint operation. When the Group enters a transaction with a joint operation in which it is a joint operator, such as a purchase of assets, it does not recognize proportional share of profit or loss until the asset is sold to a third party. (6) Revenue recognition K-IFRS 1115 requires the recognition of revenues based on transaction price allocated to the performance obligation when or as the Group performs that obligation to the customer. Revenues other than those from contracts with customers, such as interest revenue and loan origination fee (cost), are recognized through effective interest rate method. 1) Revenues from contracts with customers The Group recognizes revenue when the Group satisfies a performance obligation by transferring a promised good or service to a customer. When a performance obligation is satisfied, the Group shall recognize as a revenue the amount of the transaction price that is allocated to that performance obligation. The transaction price is the amount of consideration to which the Group expects to be entitled in exchange for transferring promised goods or services to a customer, excluding amounts collected on behalf of third parties. WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 35 - The Group is recognizing revenue by major sources as shown below: ① Fees and commission received for brokerage The fees and commission received for agency are the amount of consideration or fee expected to be entitled to receive in return for providing goods or services to the other parties with the Group acting as an agency, such as in the case of sales of bancassurance and beneficiary certificates. Most of these fees and commission received for brokerage are from the business activities relevant to Banking segment. ② Fees and commission received related to credit The fees and commission received related to credit mainly include the lending fees received from the loan activity and the fees received in the L/C transactions. Except for the fees and commission accounted for in calculating the effective interest rate, it is generally recognized when the performance obligation has been performed. Most of these fees and commission received related to credit are from the business activities relevant to Banking, Credit card and Investment banking segment. ③ Fees and commission received for electronic finance The fees and commission received for electronic finance include fees received in return for providing various kinds of electronic financial services through firm-banking and CMS. These fees are recognized as revenue immediately upon the completion of services. Most of these fees and commission received for electronic finance are from the business activities relevant to Banking and Investment banking segment. ④ Fees and commission received on foreign exchange handling The fees and commission received on foreign exchange handling consist of various fees incurred when transferring foreign currency. The point of processing the customer's request is the time when performance obligation is satisfied, and revenue is immediately recognized when fees and commission are received after requests are processed. The business activities relevant to these fees and commission received on foreign exchange handling are substantially attributable to Banking segment. ⑤ Fees and commission received on foreign exchange The fees and commission received on foreign exchange consist of fees related to the issuance of various certificates, such as exchange, import and export performance certificates, purchase certificates, etc. The point of processing the customer's request is the time when performance obligation is satisfied, and revenue is immediately recognized when fees and commission are received after requests are processed. The business activities relevant to these fees and commission received on foreign exchange are substantially attributable to Banking segment. ⑥ Fees and commission received for guarantee The fees and commission received for guarantee include the fees received for the various warranties. The activities related to the warranty consist mainly of performance obligations satisfied over time and fees and commission are recognized over the guarantee period. The business activities relevant to these fees and commission received for guarantee are substantially attributable to Banking segment. WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 36 - ⑦ Fees and commission received on credit card The fees and commission received on credit card consist mainly of merchant account fees and annual fees. The Group recognizes merchant account fees by multiplying agreed commission rate to the amount paid by using the credit card. The annual fees are performance obligation satisfied over time and are recognized over agreed periods after the annual fees are paid in advance. The business activities relevant to these fees and commission received on credit card are substantially attributable to Credit cards segment. ⑧ Fees and commission received on securities business The fees and commission received on securities business consist mainly of fees and commission for the sale of beneficiary certificates, and these fees are recognized when the beneficiary certificates are sold to customers. The business activities relevant to these fees and commission received on securities business are substantially attributable to Banking and Investment banking segment. ⑨ Fees and commission from trust management The fees and commission from trust management consist of fees and commission received in return for the operation and management services for entrusted assets. These operation and management services are performance obligations satisfied over time, and revenue is recognized over the service period. Among the fees and commission from trust management, variable considerations such as profit commission that are affected by the value of entrusted assets and base return of the future periods are recognized as revenue when limitations to the estimates are lifted. Most of these fees and commission received for brokerage are from the business activities relevant to Banking segment. ⑩ Fees and commission received on credit Information The fees and commission received on credit Information are composed of the fees and commission received by performing credit investigation and proxy collection services. Credit investigation fees and commission are the amount received in return for verifying the information requested by the customer and are recognized as revenue at the time the verification is completed. Proxy collection service fees are recognized by applying the applicable rate to the collected amount at the time when collection services are completed. Most of these fees and commission received for brokerage are from the business activities relevant to other segments. ⑪ Other fees Other fees are usually fees related to remittances, but include fees related to various other services provided to customers by the Group. These fees are recognized when transactions occur at the customers' request and services are provided, at the same time when commission are received. These other fees occur across all operating segments. WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 37 - 2) Revenues from sources other than contracts with customers ① Interest income Interest income on financial assets measured at FVTOCI and financial assets at amortized costs is measured using the effective interest method. The effective interest method is a method of calculating the amortized cost of a debt instrument and of allocating the interest income over the expected life of the asset. The effective interest rate is the rate that exactly discounts estimated future cash flows to the instrument's initial unamortized cost over the expected period, or shorter if appropriate. Future cash flows include commissions and cost of reward points(limited to the primary component of effective interest rate) and other premiums or discounts that are paid or received between the contractual parties when calculating the effective interest rate, but does not include expected credit losses. All contractual terms of a financial instrument are considered when estimating future cash flows. For purchased or originated credit-impaired financial assets, interest revenue is recognized by applying the credit-adjusted effective interest rate to the amortized cost of the financial asset from initial recognition. Even if the financial asset is no longer impaired in the subsequent periods due to credit improvement, the basis of interest revenue calculation is not changed from amortized cost to unamortized cost of the financial assets. ② Loan origination fees and costs The commission fees earned on loans, which is part of the effective interest of loans, is accounted for as deferred origination fees. Incremental costs related to the origination of loans are accounted for as deferred origination fees and is being added or deducted to/from interest income on loans using effective interest rate method. 3) Dividend income Dividend income is recognized when the right to receive dividends as a shareholder is confirmed. Dividend income is recognized as an appropriate item of profit or loss in the statement of comprehensive income according to the classification of financial instruments. (7) Accounting for foreign currencies The Group’s consolidated financial statements are presented in Korean Won, which is the functional currency of the Group. At the end of each reporting period, monetary assets and liabilities denominated in foreign currencies are translated to the functional currency at its prevailing exchange rates at the date. The effective portion of the changes in fair value of a derivative that qualifies as a cash flow hedge and the foreign exchange differences on monetary items that form part of net investment in foreign operations are recognized in equity. Assets and liabilities of the foreign operations subject to consolidation are translated into Korean Won at foreign exchange rates at the end of the reporting period. Except for situations in which it is required to use exchange rates at the date of transaction due to significant changes in exchange rates during the period, items that belong to profit or loss shall be measured by average exchange rate, with foreign exchange differences recognized as other comprehensive income and added to equity (allocated to non-controlling interests, if appropriate). When foreign operations are disposed, the controlling interest’s share of accumulated foreign exchange differences related to such foreign operations will be reclassified to profit or loss, while non- controlling interest’s corresponding share will not be reclassified. Adjustments to fair value of identifiable assets and liabilities, and goodwill arising from the acquisition of foreign operations will be treated as assets and liabilities of the corresponding foreign operation, and translated using foreign exchange rates at the end of the period. The foreign exchange differences are recognized in other comprehensive income. WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 38 - (8) Cash and cash equivalents The Group is classifying cash on hand, demand deposits, interest-earning deposits with original maturities of up to three months on acquisition date, and highly liquid investments that are readily convertible to known amounts of cash and subject to an insignificant risk of changes in value as cash and cash equivalents. (9) Financial assets and financial liabilities 1) Financial assets A regular way purchase or sale of financial assets is recognized or derecognized on the trade or settlement date. A regular way purchase or sale is a purchase or sale of a financial asset under a contract whose term requires delivery of the asset within the time frame established generally by regulation or convention in the marketplace concerned. On initial recognition, financial assets are classified into financial assets at FVTPL, financial assets at FVTOCI, and financial assets at amortized cost according to its business model and contractual cash flows. a) Business model The Group evaluates the way business is being managed, and the purpose of the business model for managing a financial asset best reflects the way information is provided to the management at its portfolio level. Such information considers the following: - The accounting policies and purpose specified for the portfolio, the actual operation of such policies. This includes strategy of the management focusing on the receipt of contractual interest revenue, maintaining a certain level of interest income, matching the duration of financial assets and the duration of corresponding liabilities to obtain the asset, and outflow or realization of expected cash flows from disposal of assets - The way the performance of a financial asset held under the business model is evaluated, and the way such evaluation is being reported to the management - The risk affecting the performance of the business model (and financial assets held under the business model), and the way such risk is being managed - The compensation plan for the management (e.g. whether the management is being compensated based on the fair value of assets or based on contractual cash flows received) - Frequency, amount, timing and reason for sale of financial assets in the past, and forecast of future sale activities. b) Contractual cash flows The principal is defined to be the fair value of a financial assets at initial recognition. Interest is not only composed of consideration for the time value of money, consideration for the credit risk related to remaining principal at a certain period of time, and consideration for other cost (e.g. liquidity risk and cost of operation) and fundamental risk associated with lending, but also profit. When evaluating whether contractual cash flows are solely payments of principal and interests, the Group considers the contractual terms of the financial instrument. When a financial asset contains contractual conditions that modify the timing and amount of contractual cash flows, it is required to determine whether contractual cash flows that arise during the remaining life of the financial instrument due to such contractual condition are solely payments of principal and interest. The Group considers the following elements when evaluating the above: - Conditions that lead to modification of timing or amount of cash flows - Contractual terms that adjust contractual nominal interest, including floating rate features - Early payment features and maturity extension features WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 39 - - Contractual terms that limit the Group’s claim on cash flows arising from certain assets ① Financial assets at FVTPL The Group is classifying those financial assets that are not classified as either financial assets at amortized cost or financial assets at FVTOCI, and those designated to be measured at FVTPL, as financial assets at FVTPL. Financial assets at FVTPL are measured at fair value, and related profit or loss is recognized in net income. Transaction costs related to acquisition at initial recognition is recognized in net income immediately upon its occurrence. It is possible to designate a financial asset as financial asset at FVTPL if at initial recognition: (a) it is possible to remove or significantly reduce recognition or measurement mismatch that may otherwise have occurred if not for its designation as financial asset at FVTPL; (b) the financial asset forms part of the Group’s financial instrument group (a group composed of a combination of financial asset or liability), is measured at fair value and is being evaluated for its performance, and such information is provided internally; and (c) the financial asset is part of a contract that contains one or more of embedded derivatives, and is a hybrid contract in which designation as financial asset at FVTPL is allowed under K-IFRS 1109 Financial Instruments. However, the designation is irrevocable. ② Financial assets at FVTOCI When financial assets are held under a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets, and when contractual cash flows from such financial assets are solely payments of principal and interest, the financial assets are classified as financial assets at FVTOCI. Also, for investments in equity instruments that are not held for short-term trade, an irrevocable election is available at initial recognition to present subsequent changes in fair value as other comprehensive income. At initial recognition, financial assets at FVTOCI are measured at its fair value plus any direct transaction cost, and is subsequently measured in fair value. However, for equity instruments that do not have a quotation in an active market and in which fair value cannot be measured reliably, they are measured at cost. The income tax effects related to the changes in fair value except for profit or loss items such as impairment losses (reversals), interest revenue calculated by using effective interest method, and foreign exchange gain or loss about debt instrument are recognized as other comprehensive income until the asset’s disposal. Upon derecognition, the accumulated other comprehensive income is reclassified from equity to net income for FVTOCI (debt instrument), and reclassified within the equity for FVTOCI (equity instruments). ③ Financial assets at amortized cost When financial assets are held under a business model whose objective is to hold financial assets in order to collect contractual cash flows, and when contractual cash flows from such financial assets are solely payments of principal and interest, the financial assets are classified as financial assets at amortized cost. At initial recognition, financial assets at amortized cost are recognized at fair value plus any direct transaction cost. Financial assets at amortized cost are presented at amortized cost using effective interest method, less any loss allowance. WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 40 - 2) Financial liabilities At initial recognition, financial liabilities are classified into either financial liabilities at FVTPL or financial liabilities at amortized cost. Financial liabilities are usually classified as financial liabilities at FVTPL when they are acquired with a purpose to repurchase them within a short period of time, when they are part of a certain financial instrument portfolio that is actually and recently being managed with a purpose of short- term profit and joint management by the Group at initial recognition, and when they are derivatives that do not qualify as hedging instruments. Financial liabilities at FVTPL are measured at fair value plus direct transaction cost at initial recognition, and are subsequently measured at fair value. Profit or loss arising from financial liabilities at FVTPL is recognized in net income when occurred. It is possible to designate a financial liability as financial liability at FVTPL if at initial recognition: (a) it is possible to remove or significantly reduce recognition or measurement mismatch that may otherwise have occurred if not for its designation as financial liability at FVTPL; (b) the financial asset forms part of the Group’s financial instrument group (a group composed of a combination of financial asset or liability) according to the Group’s documented risk management or investment strategy, is measured at fair value and is being evaluated for its performance, and such information is provided internally; and (c) the financial liability is part of a contract that contains one or more of embedded derivatives, and is a hybrid contract in which designation as financial liability at FVTPL is allowed under K-IFRS 1109 Financial Instruments. Financial liabilities designated as at FVTPL are initially recognized at fair value, with any direct transaction cost recognized in profit or loss, and are subsequently measured at fair value. Any profit or loss from financial liabilities at FVTPL are recognized in profit or loss. Financial liabilities not classified as financial liabilities at FVTPL are measured at amortized cost. 3) Reclassification Financial assets are not reclassified after initial recognition unless the Group modifies the business model used to manage financial assets. When the Group modifies the business model used to manage financial assets, all affected financial assets are reclassified on the first day of the first reporting period after the modification. 4) Derecognition Financial assets are derecognized when contractual rights to cash flows from the financial assets are expired, or when substantially all of risk and reward for holding financial assets is transferred to another entity as a result of a sale of financial assets. If the Group does not have and does not transfer substantially all of the risk and reward of holding financial assets with control of the transferred financial assets retained, the Group recognizes financial assets to the extent of its continuing involvement. If the Group holds substantially all the risk and reward of holding a financial asset, it continues to recognize that asset and proceeds are accounted for as collateralized borrowings. When a financial asset is fully derecognized, the difference between the carrying amount and the sum of proceeds and accumulated other comprehensive income is recognized as profit or loss in case of FVTOCI (debt instruments), and as retained earnings for FVTOCI (equity instruments). In case when a financial asset is not fully derecognized, the Group allocates the carrying amount into amounts retained in the books and removed from the books, based on the relative fair value of each portion at the date of sale, and based on the degree of continuing involvement. For the derecognized portion of the financial assets, the difference between its carrying amount and the sum of proceeds and the portion of accumulated other comprehensive income attributable to that portion will be recognized in profit or loss in case of debt instruments and recognized in retained earnings in case of equity instruments. The accumulated other comprehensive income is distributed to the WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 41 - portion of carrying amount retained in the books, and to the portion of carrying amount removed from the books. The Group derecognizes financial liabilities when, and only when, the Group’s obligations are discharged, cancelled or have expired. The difference between the carrying amount of the financial liability derecognized and the consideration paid and payable is recognized in profit or loss. When the Group exchanges with the existing lender one debt instrument into another one with the substantially different terms, such exchange is accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability. Similarly, the Group accounts for substantial modification of terms of an existing liability or part of it as an extinguishment of the original financial liability and the recognition of a new liability. It is assumed that the terms are substantially different if the discounted present value of the cash flows under the new terms, including any fees paid net of any fees received and discounted using the original effective rate is at least 10 percent different from the discounted present value of the remaining cash flows of the original financial liability. 5) Fair value of financial instruments Financial assets at FVTPL and financial assets at FVTOCI are measured and presented in consolidated financial statements at their fair values, and all derivatives are also subject to fair value measurement. Fair value is defined as the price that would be received to exchange an asset or paid to transfer a liability in a recent transaction between independent parties that are reasonable and willing. Fair value is the transaction price of identical financial assets or financial liabilities generated in an active market. An active market is a market where trade volume is sufficient and objective price information is available due to the fact that bid and ask price differences are small. When trade volume of a financial instrument is low, when transaction prices within the market show large differences among them, or when it cannot be concluded that a financial instrument is being traded within an active market due to disclosures being extremely shallow, fair value is measured using valuation techniques based on alternative market information or using internal valuation techniques based on general and observable information obtained from objective sources. Market information includes maturity and characteristics, duration, similar yield curve, and variability measurement of financial instruments of similar nature. Fair value amount contains unique assumptions on each entity (the Group concluded that it is using assumptions applied in valuing financial instruments in the market, or risk-adjusted assumptions in case marketability does not exist). The market approach and income approach, which are valuation techniques used to estimate the fair value of financial instruments, both require significant judgment. Market approach measures fair value using either a recent transaction price that includes the financial instrument, or observable information on comparable firm or assets. Income approach measures fair value through discounting future cash flows with a discount rate reflecting market expectations, and revenue, operating income, depreciation, capital expenditures, income tax, working capital and estimated residual value of financial investments are being considered when deriving future cash flows. Valuation techniques such as the above include estimates based on the financial instruments’ complexity and usefulness of observable information in the market. WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 42 - The valuation techniques used in the evaluation of financial instruments are explained below. a) Financial assets at FVTPL and Financial assets at FVTOCI The fair value of equity securities included in financial assets at FVTPL and financial assets at FVTOCI category is recognized in the statement of financial position at its available market price. Debt securities traded in the over-the-counter market are generally recognized at an amount computed by an independent appraiser. When the Group uses the fair value determined by independent appraisers, the Group usually obtains three values from three different appraisers for each financial instrument, and selects the minimum amount without making additional adjustments. For equity securities without marketability, the Group uses the amount determined by the independent appraiser. The Group verifies the prices obtained from appraisers in various ways, including the evaluation of independent appraisers’ competency, indirect verification through comparison between appraisers’ price and other available market information, and reperformed by employees who have knowledge of valuation models and assumptions that appraisers used. b) Derivatives The Group’s transactions involving derivatives such as futures and exchange traded options are measured at market value. For exchange traded derivatives classified as level 2 in the fair value hierarchy, the fair value is estimated using internal valuation techniques. If there are no publicly available market prices because they are traded over-the-counter, fair value is measured through internal valuation techniques. When using internal valuation techniques to derive fair value, the types of derivatives, base interest rate or characteristics of prices, or stock market indices are considered. When variables used in the internal valuation techniques are not observable information in the market, such variables may contain significant estimates. c) Adjustment of valuation amount The Group is exposed to credit risk when a counterparty to a derivative contract does not perform its contractual obligation, and the exposure amount is equal to the amount of derivative asset recognized in the statement of financial position. When the Group earns income through valuation of derivatives, such income is recognized as derivative asset in the statement of financial position. Some of the derivatives are traded in the market, but most of the derivatives are measured at estimated fair value derived from internal valuation models that use observable information in the market. As such, in order to estimate the fair value there should be an adjustment made to incorporate counterparty’s credit risk, and credit risk adjustment is being considered when valuing derivative assets such as over-the counter derivatives. The amount of financial liabilities is also adjusted by the Group’s own credit risk when valuing them. The amount of adjustment is derived from counterparty’s probability of default and loss given default. This adjustment considers contractual matters that are designed to reduce the Group’s exposure to each counterparty’s credit risk. When derivatives are under master netting arrangement, the exposure used in the computation of credit risk adjustment is a net amount after adding/deducting cash collateral received (or paid) from loss(or gain) position derivatives with the same counterparty. WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 43 - 6) Expected credit losses on financial assets The Group recognizes loss allowance on expected credit losses for the following assets: - Financial assets at amortized cost - Debt instruments measured at FVTOCI - Contract assets as defined by K-IFRS 1115 Expected credit losses are weighted-average value of a range of possible results, considering the time value of money, and are measured by incorporating information on current conditions and forecasts of future economic conditions that are available without undue cost or effort. The methods to measure expected credit losses are classified into following three categories in accordance with K-IFRS: - General approach: Financial assets that does not belong to below two models and unused loan commitments - Simplified approach: When financial assets are either trade receivables, contract assets or lease receivables - Credit impairment model: Purchased or originated credit-impaired financial assets The measurement of loss allowance under general approach is differentiated depending on whether the credit risk has increased significantly after initial recognition. That is, loss allowance is measured based on 12-month expected credit loss when the credit risk has not increased significantly after initial recognition, while loss allowance is measured at lifetime expected credit loss when credit risk has increased significantly. Lifetime is the expected remaining life of the financial instrument up to the maturity date of the contract. The measurement of loss allowance under simplified approach is always based on lifetime expected credit loss, and loss allowance under credit impairment model is measured as the cumulative change in lifetime expected credit loss since initial recognition. a) Measurement of expected credit losses on financial asset at amortized cost The expected credit losses on financial assets at amortized cost is measured by the difference between the contractual cash flows during the period and the present value of expected cash flows. Expected cash inflows are computed for individually significant financial assets in order to calculate expected credit losses. When financial assets that are not individually significant, they are included in a group of financial assets with similar credit risk characteristics and expected credit losses of the group are calculated collectively. Expected credit losses are deducted through loss allowance account, and when the financial asset is determined to be uncollectible, the loss allowance is written off from the books along with the related financial asset. b) Measurement of expected credit losses on financial asset at FVTOCI(Debt instruments) The measurement method of expected credit loss is identical to financial asset at amortized cost, but changes in the loss allowance is recognized in other comprehensive income. When financial assets at FVTOCI is disposed or repaid, the related loss allowance is reclassified from accumulated other comprehensive income to net income. WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 44 - (10) Offsetting financial instruments Financial assets and liabilities are presented as a net amount in the statements of financial position when the Group has an enforceable legal right and an intention to settle on a net basis or to realize an asset and settle the liability simultaneously. (11) Investment properties The Group classifies a property held to earn rentals and/or for capital appreciation as an investment property. Investment properties are measured initially at cost, including transaction costs, less subsequent depreciation and impairment. Subsequent costs are included in the carrying amount of the asset or recognized as a separate asset if it is probable that future economic benefits associated with the assets will flow into the Group and the cost of an asset can be measured reliably, and the carrying amount of a portion of an asset that are replaced by a subsequent expenditure is removed from the books. Routine maintenance and repairs are expensed as incurred. While land is not depreciated, all other investment properties are depreciated based on the depreciation method and useful lives of Property, Plant and Equipment. The estimated useful lives, residual values and depreciation method are reviewed at the end of each reporting period, and when it is deemed appropriate to change them, the effect of any change is accounted for as a change in accounting estimates. An investment property is derecognized from the consolidated financial statements on disposal or when it is permanently withdrawn from use and no future economic benefits are expected even from its disposal. The gain or loss on the derecognition of an investment property is calculated as the difference between the net disposal proceeds and the carrying amount of the property and is recognized in profit or loss in the period of the derecognition. (12) Property, Plant and Equipment Property, Plant and Equipment are stated at cost less accumulated depreciation and accumulated impairment losses. The cost of an item of Property, Plant and Equipment is expenditure directly attributable to their purchase or construction, which includes any cost 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. It also includes the initial estimate of costs of dismantling and removing the item and restoring the site on which it is located. Subsequent costs are recognized in the carrying amount of an asset or as a separate asset (if appropriate) if it is probable that future economic benefit associated with the assets will flow into the Group and the cost of an asset can be measured reliably. Routine maintenance and repairs are expensed as incurred. While land is not depreciated, for all other Property, Plant and Equipment, depreciation is charged to net income on a straight-line basis by applying the following estimated economic useful lives on the amount of cost or revalued amount less residual value. Useful life Buildings used for business purpose 26 to 57 years Structures in leased office 4 to 5 years Properties for business purpose 4 to 7 years The Group reassesses the depreciation method, the estimated useful lives and residual values of Property, Plant and Equipment at the end of each reporting period. If changes in the estimates are deemed appropriate, the changes are accounted for as a change in an accounting estimate. When there is an indicator of impairment and the carrying amount of a Property, Plant and Equipment item exceeds the estimated recoverable amount, the carrying amount of such asset is reduced to the recoverable amount. WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 45 - (13) Intangible assets and goodwill The Group recognizes the acquisition cost of an intangible asset as the manufacturing cost or purchase cost plus additional incidental expenses. Development costs are the sum of expenditures incurred after the asset recognition requirements, such as technical feasibility and future economic benefits, are met. After the initial recognition, the carrying value is presented as the accumulated amortization and accumulated impairment losses deducted from the cost. The Group’s intangible asset are amortized over the following economic lives using the straight-line method. However, for some intangible assets, the period of time that is expected to be available is not predictable, so the useful life of some intangible assets is assessed as indefinite and not depreciated. The estimated useful life and amortization method of intangible assets with a finite useful life are reviewed at the end of each reporting period. If changes in the estimates are deemed appropriate, the changes are accounted for as a change in an accounting estimate. Useful life Industrial property rights 5 to 10 years Development costs 5 years Software and others 1 to 10 years In addition, when an indicator that intangible assets are impaired is noted, and the carrying amount of the asset exceeds the estimated recoverable amount of the asset, the carrying amount of the asset is reduced to its recoverable amount. Goodwill acquired in a business combination is included in intangible assets. Goodwill is not amortized, but is subject to an impairment test at the cash-generating unit level every year, and whenever there is an indicator that goodwill is impaired. Goodwill is allocated to each of the Group’s cash-generating unit (or groups of cash-generating units) that is expected to benefit from the synergies of the combination. If the recoverable amount of the cash-generating unit is less than its carrying amount, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit on a pro rata basis based on the carrying amount of each asset in the unit. Any impairment loss for goodwill is recognized directly in profit or loss. An impairment loss recognized for goodwill is not reversed in subsequent periods. (14) Impairment of non-monetary assets Intangible assets with indefinite useful lives or intangible assets that are not yet available for use are tested for impairment annually, regardless of whether there is any indication of impairment. All other assets are tested for impairment by estimating the recoverable amount when there is an objective indication that the carrying amount may not be recoverable. Recoverable amount is the higher of value in use or net fair value, less costs to sell. If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount and such impairment loss is recognized immediately in net income. WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 46 - (15) Leases The Group determines whether the contract is a lease or includes a lease at the time of the contract agreement. In exchange for consideration in a contract, the contract is either a lease or includes a lease if the control over the use of the identified asset is transferred for a period of time. In determining whether a contract transfers control over the use of the asset to which it is identified, the Group uses the definition of lease in K-IFRS 1116. ① The Group as a lessee The Group recognizes the right-of-use asset and the lease liability at the commencement date of the lease. The right-of-use asset is measured at cost, which comprises the amount of the initial measurement of the lease liability, lease payments made at or before the commencement date(less any lease incentives received), initial direct costs, and an estimate of costs to be incurred by the lessee in dismantling and removing the underlying asset, restoring the site on which it is located. The right-of-use asset is subsequently depreciated on a straight-line basis from the commencement of the lease to the end of the lease term. However, if the lease transfers ownership of the underlying asset to the lessee by the end of the lease term or if the cost of the right-of-use asset reflects that the lessee will exercise a purchase option, the lessee depreciates the right-of-use asset same as a fixed asset from the commencement date to the end of the useful life of the underlying asset. The right-of-use asset may be reduced by an impairment of the underlying asset or adjusted by remeasurement of the lease liability. The lease liability is initially measured at the present value of the lease payments that are not paid at that date. The lease payments are discounted using the interest rate implicit in the lease, if that cannot be readily determined, the Group uses its incremental borrowing rate. The Group generally uses the incremental borrowing rate. The Group makes adjustments to reflect the terms of the lease and the characteristics of the lease asset in interest rates obtained from external financial information, and calculates the incremental borrowing rate. The Group calculates the lease term by including the relevant period when it is quite certain that the lessee will exercise the extension option or the termination option. The Group calculates the enforceable period in consideration of the economic disadvantages of terminating the contract if the lessee and the lessor have the right to terminate it without the consent of the other parties. The lease payments included in the measurement of the lease liability comprise the following: - Fixed payments (including in-substance fixed payments) - Variable lease payments that depend on an index(or a rate), initially measured using the index or a rate as at the commencement date - 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, lease payments of the extended period if the lessee is reasonably certain to exercise extension 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 liability is subsequently increased be the interest expense recognized for the lease liability and decreased by reflecting the payment of the lease payments. The lease liability is remeasured if the future lease payments change depending on changes in the index(or a rate), changes in the expected amount to be paid under the residual value guarantee, and changes in the assessment of whether the purchase or extension option is reasonably certain to be exercised or not to exercise the terminate option. WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 47 - When remeasuring a lease liability, the related right-of-use asset is adjusted and if the carrying amount of the right-of-use asset decreases to zero, the remeasurement amount is recognized in profit or loss. The Group applies its judgment when determining the lease term for some lease contracts that include the extension option. The assessment of whether the Group is reasonably certain to exercise the option significantly affects the lease term and therefore has a significant impact on the amount of lease liabilities and the right-of-use asset. Because the Group can replace the asset without significant cost or business discontinuation, the option to extend the lease is not included in the lease liability in most offices and vehicle transport leases. The Group reevaluates the lease term when the option is exercised (or not exercised) or the Group is liable to exercise (or not exercise) the option. Group will change its judgment only when significant events occur that affect the lessee's control and the determination of the lease term, or there is a significant change in the circumstances. Lease liabilities and right-of-use-asset increased by 7,373 million Won, reflecting the exercise impact of the extension and termination options during the current term. In the statement of financial position, the Group classified the right-of-use assets that do not meet the definition of investment property as ‘Property, Plant and Equipment’ and the lease liabilities as ‘other financial liabilities.’ The Group has chosen a practical expedient that does not recognize the right-of-use asset and lease liabilities for short-term leases with a lease term less than 12 months and leases for which the underlying asset is of low value. The Group recognizes the lease payments associated with those leases as an expense on a straight-line basis over the lease term. ② The Group as a lessor At the date of the agreement or the effective date of the modification containing the lease element, the Group allocates the consideration of the contract to each lease element based on its relative stand-alone price. As a lessor, the Group classifies its leases as either a finance lease or an operating lease at the commencement date. The Group subsequently judges whether the lease transfers substantially all the risks and rewards incidental to ownership of an underlying asset. A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership of an underlying asset, otherwise a lease is classified as an operating lease. If the agreement contains both lease and non-lease elements, the Group applies K-IFRS 1115 to allocate the consideration of the contract. The Group applies the derecognition and impairment provisions of K-IFRS 1109 to its net investment in the lease. The Group also carries out regular review of the unguaranteed residual value used to calculate total lease investment. The Group recognizes lease payments from operating lease as income on a straight-line basis. The accounting policy that the Group has applied as a lessor is not different from K-IFRS 1116. WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 48 - (16) Derivative instruments Derivative instruments are classified as forwards, futures, options and swaps, depending on the types of transactions and are classified at the point of transaction as either trading or hedging based on its purpose. Derivatives are initially recognized at fair value at the date of contract and are subsequently measured at fair value at the end of each reporting period. The resulting gain or loss is recognized in net income immediately unless the derivative is designated or effective as a hedging instrument. If derivatives have been designated as hedging instruments and if it is effective, the point of recognition of gain or loss depends on the characteristics of hedging relationship. Derivatives that have positive (+) fair values are recognized as financial assets and those that have negative (-) fair values are recognized as financial liabilities. Derivatives are not offset in the consolidated financial statements unless they have legally enforceable right to set off or are intended to set off. 1) Embedded derivatives Embedded derivatives are components of a hybrid financial instrument that includes a non- derivative host contract. It has an effect of modifying part of cash flows of the hybrid financial instrument similar to an independent derivative. Embedded derivatives that are part of a hybrid contract of which the host contract is a financial asset within the scope of K-IFRS 1109 are not separated. The classification is done by considering the hybrid contract as a whole, and subsequent measurement is either at amortized cost or fair value. If embedded derivatives are part of a hybrid contract of which the host contract is not a financial asset within the scope of K-IFRS 1109 (e.g. financial liability), then these are treated as separate derivatives if embedded derivatives meet the definition of a derivative, characteristics & risk of the embedded derivatives are not closely related to that of host contract, and if the host contract is not measured at FVTPL. 2) Hedge accounting The Group is applying K-IFRS 1109 in regard to hedge accounting. The Group is designating certain derivatives as hedging instrument against fair value changes in relation to the interest rate risk, foreign currency translation and interest rate risk, and foreign currency translation risk. The Group is documenting the relationship between hedging instruments and hedged items at the commencement of hedging in accordance with their purpose and strategy. Also, the Group documents at the commencement and subsequent dates whether the hedging instrument effectively counters the changes in fair value of hedged items. A hedging instrument is effective only when it meets all the following criteria: - When there is an economic relationship between the hedged items and hedging instruments - When the effect of credit risk is not stronger than the change in value due to the economic relationship between the hedged items and hedging instruments - When the hedge ratio of hedging relationship is equal to the proportion of the number of items that the group actually hedges and the number of hedging instruments that the Group actually uses to hedge the number of hedged items When a hedging relationship no longer meets the hedging effectiveness requirements related to hedge ratio, but when the purpose of risk management on designated hedging relationship is still maintained, the hedge ratio of the hedging relationship is adjusted so that hedging relationship may meet the requirements again (Hedge ratio readjustment). WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 49 - The Group has designated derivatives as hedging instrument except for the portion on foreign currency basis spread. The fair value change due to foreign currency basis spread is recognized in other comprehensive income and is accumulated in equity. If the hedged item is related to transactions, the accumulated other comprehensive income is reclassified to profit or loss when the hedged item affects the profit or loss. However, when non-monetary items are subsequently recognized due to hedged items, the accumulated equity is removed from the equity directly, and is included in the initial carrying amount of the recognized non-monetary items. Such transfers does not affect other comprehensive income. But if part or all of accumulated equity is not expected to be recovered in the future periods, the amount not expected to be recovered is immediately reclassified to profit or loss. If the hedged item is time-related, then the foreign currency basis spread on the day the derivative is designated as a hedging instrument that is related to the hedged item is reclassified to profit or loss over the term of the hedge. 3) Fair value hedge Gain or loss arising from valid hedging instrument is recognized in profit or loss. However, when the hedging instrument mitigates risks on equity instruments designated as financial assets at FVTOCI, related gain or loss is recognized in other comprehensive income. The carrying amount of hedged items that are not measured in fair value is adjusted by the changes in fair value arising from the hedged risk, with resulting gain or loss reflected in net income. In case of debt instruments measured at FVTOCI, carrying amount is an amount that is already adjusted to fair value and thus gain or loss arising from the hedged risk is recognized in profit or loss instead of other comprehensive income without adjustments in carrying amount. When the hedged item is equity instruments measured at FVTOCI, the gain or loss arising from hedged risk is retained at other comprehensive income in order to match the gain or loss with hedging instruments. When gains or losses arising from the hedged risk are recognized in profit or loss of the current term, they are recognized as items related to the hedged items. Hedge accounting ceases to apply only when hedging relationship (or part of it) does not meet the requirements of hedge accounting (even after hedging relationship readjustment, if applicable). This treatment holds in case of lapse, disposal, expiry and exercise of hedging instruments, and this cease of treatment applies prospectively. The fair value adjustments made to carrying amount of hedged item due to hedged risk is amortized from the date of discontinuance of hedge accounting and is recognized in profit or loss. 4) Cash flow hedge The Group recognizes the effective portion of changes in the fair value of derivatives and other valid hedging instruments that are designated and qualified as cash flow hedges in other comprehensive income to the extent of cumulative fair value changes of the hedged item from the starting date of hedge accounting and it is cumulated in the cash flow hedge reserve. The gain or loss relating to the ineffective portion is recognized immediately in net income. Amounts previously recognized in other comprehensive income and accumulated in equity are reclassified to net income when the hedged item affects net income. However, when non-monetary assets or liabilities are subsequently recognized due to expected transactions involving hedged items, the valuation gain or loss accumulated in the equity as other comprehensive income is removed from the equity and included in the initial carrying amount of the recognized non- monetary assets or liabilities. Such transfers does not affect other comprehensive income. Also, if the cash flow hedge reserve is loss and accumulated other comprehensive income is a loss and part or all of the losses are not expected to be recovered in the future periods, the said amount is immediately reclassified to profit or loss. WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 50 - Hedge accounting ceases to apply only when hedging relationship (or part of it) does not meet the requirements of hedge accounting (even after hedging relationship readjustment, if applicable). This treatment holds in case of lapse, disposal, expiry and exercise of hedging instruments, and this cease of treatment applies prospectively. At the point of cessation of cash flow hedge, the valuation gain or loss recognized as accumulated other comprehensive income continues to be recognized as equity, and is reclassified to profit or loss when the expected transaction is ultimately recognized as profit or loss. However, when transactions are no longer expected to occur, the valuation gain or loss of hedging instrument recognized as accumulated other comprehensive income is immediately reclassified to profit or loss. (17) Assets (or disposal group) held for sale The Group classifies a non-current asset (or disposal group) as held for sale if its carrying amount will be recovered principally through a sale transaction rather than through continuing use. Non-current assets (and disposal groups) classified as held for sale are measured at the lower of their previous carrying amount and fair value less costs to sell. (18) Provisions Provisions are recognized if it has present or contractual obligations as a result of the past event, it is probable that an outflow of resources will be required to settle the obligation and the amount of the obligation is reliably estimated. A provision is not recognized for the future operating losses. The Group recognizes provisions related to the payment guarantees, loan commitment and litigations. Under the terms of lease agreement, the cost incurred by the Group to recover the leased asset to its original state are recognized as provisions at the commencement of the lease or during a specific period in which the obligation is incurred as a result of the using the asset. The provisions are measured as the best estimate of the expenditure required to recover the asset, which is regularly reviewed and sated to the new situation. Where there are a number of similar obligations, the probability that an outflow will be required in settlement is determined by considering the obligations as a whole. Although the likelihood of outflow for any one item may be small, if it is probable that some outflow of resources will be needed to settle the obligations as a whole, a provision is recognized. At the end of each reporting period, the remaining provision balance is reviewed an assessed to determine if the current best estimate is being recognized. (19) Equity instruments issued by the Group 1) Capital and compound financial instruments The Group classifies a financial instrument that it issues as a financial liability or an equity instrument in accordance with the substance of the contractual arrangement. A financial liability is a contractual obligation to deliver cash or another financial asset to another entity. An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. The compound financial instruments are financial instruments where it is neither a financial liability nor an equity instrument because it was designed to contain both equity and debt elements. If the Group reacquires its own equity instruments, the consideration paid including the direct transaction costs (net of tax expense) are presented as a deduction from total equity until such instruments are retired or reissued. When these instruments are reissued, the consideration received (net of direct transaction costs) is included in the shareholder’s equity. WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 51 - 2) Hybrid securities The Group classifies hybrid securities that have the unconditional right to avoid contractual obligations, such as to deliver cash or other financial assets in relation to financial instruments into equity instruments and presents as part of equity. Meanwhile, hybrid securities issued by subsidiaries of the group are classified as non-controlling interests according to the criteria, and the distribution paid is treated as net profit attributable to non-controlling interests in the consolidated comprehensive income statement. (20) Financial guarantee contracts A financial guarantee contract is a contract where the issuer must pay a certain amount of money in order to compensate losses suffered by the creditor when debtor defaults on a debt instrument in accordance with original or modified contractual terms. A financial guarantee is initially measured at fair value and is subsequently measured at the higher of the amounts below unless it is designated to be measured at FVTPL or when it arises from disposal of an asset. - Loss allowance in accordance with K-IFRS 1109 - Initial carrying amount less accumulated profit measured in accordance with K-IFRS 1115 (21) Employee benefits and pensions The Group recognizes the undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by the employees. Also, the Group recognizes expenses and liabilities in the case of accumulating compensated absences when the employees render services that entitle their right to future compensated absences. Similarly, the Group recognizes expenses and liabilities for customary profit distribution or bonuses when the employees render services, even though the Group does not have legal obligation to do so because it can be construed as constructive obligation. The Group is operating defined contribution plans and defined benefit plans. Contributions to defined contribution plans are recognized as an expense when employees have rendered services entitling them to receive the benefits. For defined benefit plans, the defined benefit liability is calculated through an actuarial assessment using the projected unit credit method every end of the reporting period, conducted by a professional actuaries. Remeasurement, comprising actuarial gains and losses, the return on plan assets (excluding the amount included in net interest from net defined benefit liability (asset)), and the effect of the changes to the asset ceiling is reflected immediately in the consolidated statement of financial position with a charge or credit recognized in other comprehensive income in the period in which they occur. Remeasurement recognized in the consolidated statement of comprehensive income is not reclassified to profit or loss in the subsequent periods. Past service cost is recognized in profit or loss in the period of a plan amendment. Net interest is calculated by applying the discount rate at the beginning of the period to the net defined benefit liability or asset. Defined benefit costs are composed of service cost (including current service cost and past service cost, as well as gains and losses on settlements), net interest expense (income) and remeasurement. The Group presents the service cost and net interest expense (income) components in profit or loss, and the remeasurement component in other comprehensive income. Curtailment gains and losses are accounted for as past service costs. The retirement benefit obligation recognized in the consolidated statement of financial position represents the actual deficit or surplus in the Group’s defined benefit plans. Any surplus resulting from this calculation is recognized as an asset limited to the present value of any economic benefits available in the form of refunds from the plans or reductions in future contributions to the plans. Liabilities for termination benefits are recognized at the earlier of either the date when the Group is no longer able to cancel its proposal for termination benefits or the date when the Group has recognized the cost of restructuring that accompanies the payment of termination benefits. WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 52 - (22) Income taxes Income tax expense is composed of current tax and deferred tax. That is, income tax expense is composed of taxes payable or refundable during the period and deferred taxes calculated by applying asset-liability method to taxable and deductible temporary differences arising from operating loss and tax credit carryforwards. Temporary differences are the differences between the carrying values of assets and liabilities for financial reporting purposes and their tax bases. Deferred income tax benefit or expense is recognized for the change in deferred tax assets or liabilities. Deferred tax assets and liabilities are measured as of the reporting date using the enacted or substantively enacted tax rates expected to apply in the period in which the liability is settled or asset is realized. Deferred tax assets, including the carryforwards of unused tax losses, are recognized to the extent it is probable that the deferred tax assets will be realized. Deferred income tax assets and liabilities are offset if, and only if, the Group has a legally enforceable right to offset current tax assets against current tax liabilities, and the deferred tax assets and liabilities relate to income taxes levied by the same taxation authority or when the entity intends to settle current tax liabilities and assets on a net basis with different taxable entities. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred liabilities are not recognized if the temporary difference arises from the initial recognition of goodwill. Deferred tax assets or liabilities are not recognized if they arise from the initial recognition (other than in a business combination) of other assets and liabilities in a transaction that affects neither the taxable profit(tax loss) nor the accounting profit. Current and deferred taxes are recognized in profit or loss, except when they relate to items that are recognized in other comprehensive income or directly in equity or when it arises from business combination. The tax uncertainty arises from the compensation claim filed by the Group, and refund litigation for the amount of tax levied by the tax authority due to differences in tax law analysis. In response, the Group paid taxes in accordance with K-IFRS 2123 due to the tax authority’s claim, but recognized as a corporate tax asset if it is highly probable of a refund in the future. In addition, the Group appropriately estimates and reflects the amount of corporate tax liabilities based on the analysis of corporate tax laws and the evaluation of many factors, including past experiences. (23) Criteria of calculating earnings per share (“EPS”) Basic EPS is a calculation of net income per each common stock. It is calculated by dividing net income attributable to ordinary shareholders by the weighted-average number of common shares outstanding. Diluted EPS is calculated by adjusting the earnings and number of shares for the effects of all dilutive potential common shares. (24) Share-based payment For cash-settled share-based payment transactions that provide cash in return for the goods or services received, the Group measures the goods or services received, and the corresponding liability at the fair value and recognizes as employee benefit expenses and liabilities during the vesting period. The fair value of the liability is remeasured at the end of each reporting period and the settlement date until the liability is settled, and changes in fair value are recognized as employee benefits. WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 53 - 3. MATERIAL ACCOUNTING ESTIMATES AND ASSUMPTIONS Material accounting estimates and assumptions are continuously evaluated based on a number of factors, including historical experience and expectations of future events that are considered reasonably probable. Accounting estimates calculated based on these definitions may not match actual results. The accounting estimates and assumptions that include a significant risk of materially changing the carrying amounts of assets and liabilities currently recognized in the following accounting period are as follows. The Korean government implemented support measures such as loan repayment deferment to mitigate the negative impact of COVID-19. The Group determined that the credit risk of loans affected by the repayment deferment has significantly increased, with a high possibility of default. The Group will continue to evaluate the adequacy of forward-looking information regarding the duration of the economic impacts of COVID-19 and future government policies even after termination of financial support. The Group also manages credit risk on loans with extended maturities. Woori Bank recognizes additional expected credit loss allowance for loans subject to payment holiday and extended maturities due to the assessment of the high possibility of default. Woori Bank’s total loans (loan receivables, payment guarantees) that are subject to payment holiday and that changed its stage from 12-month to lifetime expected credit losses (Stage 2) due to the increase in credit risk considering payment holiday, and additionally recognized expected credit loss allowances are as follows. (Unit: Korean Won in millions): December 31, 2023 December 31, 2022 Total loans that are subject to loan payment holiday Loans Corporate 1,453,314 1,958,133 Retail 130,090 216,487 Off-balance accounts 22,038 2,391 Total 1,605,442 2,177,011 Total loans that changed its stage from 12-month to lifetime (Stage 2) expected credit losses Loan Corporate 1,367,603 1,774,717 Retail 101,422 169,851 Off-balance accounts 6,642 2,391 Total 1,475,667 1,946,959 The expected credit loss allowance that are additionally recognized Loan Corporate 210,386 312,054 Retail 9,318 12,643 Off-balance accounts 1,734 317 Total 221,438 325,014 Total loans with extension of maturities and additional expected credit loss allowances as of December 31, 2023, are as follows. (Unit: Korean Won in millions): December 31, 2023 Total loans that are subject to extension of maturity Loans Corporate 5,227,017 Retail 2,124,207 Off-balance accounts 31,976 Total 7,383,200 Expected credit loss allowance that are additionally recognized Loan Corporate 58,545 Retail 35,515 Off-balance accounts 115 Total 94,175 WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 54 - In addition, as of December 31, 2023, the Group reflects the forward-looking information in the estimated probability of default rate and recognizes additional expected credit loss allowance appropriations by adjusting the forward-looking indicators in consideration of the Korean government financial support policies, increased economic uncertainty, and potential insolvency due to market interest rate hikes. Woori Card Co., Ltd. recognize an additional allowance for expected credit losses as it evaluates loans with payment holiday and extended maturities as having a high probability of default. As of December 31, 2023 and 2022, which credit risk has increased significantly due to payment holiday, financial assets at amortized cost of debtors transferred from 12-month expected credit loss measurement to lifetime expected credit losses are 6,764 million Won and 6,670 million Won, respectively, and additionally recognized expected credit loss allowance are 131 million Won and 177 million Won, respectively. Woori Financial Capital Co., Ltd. recognize an additional allowance for expected credit losses as it evaluates loans with payment holiday and extended maturities as having a high probability of default. As of December 31, 2023 and 2022, which credit risk has increased significantly due to payment holiday, financial assets at amortized cost of debtors transferred from 12-month expected credit loss measurement to lifetime expected credit losses are 24,384 million Won and 52,611 million Won, respectively, and additionally recognized expected credit loss allowance are 5,284 million Won and 9,846 million Won, respectively. 1) Income taxes The Group has recognized current and deferred taxes based on best estimates of expected future income tax effect arising from the Group’s operations until the end of the current reporting period. However, actual tax payment may not be identical to the related assets/liabilities already recognized, and these differences may affect current taxes and deferred tax assets/liabilities at the time when income tax effects are finalized. Deferred tax assets relating to tax losses carried forward and deductible temporary differences are recognized only to the extent that it is probable that future taxable profit will be available against which the tax losses carried forward and the deductible temporary differences can be utilized. In this case the Group’s evaluation considers various factors such as estimated future taxable profit based on forecasted operating results, which are based on historical financial performance. The Group is reviewing the carrying amount of deferred tax assets every end of the reporting period and in the event that the possibility of earning future taxable income changes, the deferred tax assets are adjusted up to taxable income sufficient to use deductible temporary differences. 2) Valuation of financial instruments Financial assets at FVTPL and FVTOCI are recognized in the consolidated financial statements at fair value. All derivatives are measured at fair value. Valuation techniques are required in order to determine fair values of financial instruments where observable market prices do not exist. Financial instruments that are not actively traded and have low price transparency will have less objective fair value and require broad judgment in liquidity, concentration, uncertainty in market factors and assumption in price determination and other risks. As described in ‘2. Basis of Preparation and Material Accounting Policies (9) 5) Fair value of financial instruments’, when valuation techniques are used to determine the fair value of a financial instrument, various general and internally developed techniques are used, and various types of assumptions and variables are incorporated during the process. 3) Impairment of financial instruments The accuracy of the provision for credit losses is determined by the estimation of the expected cash flows for WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 55 - each tenant for estimating the individually assessed loan-loss allowance, and the assumptions and variables in the model used for estimating the collectively assessed loan-loss allowance payment, guarantee and unused commitment. The Group has estimated the allowance for credit losses based on reasonable and supportable information that was available without undue cost or effort at the reporting date about past events, current conditions and forecasts of future economic conditions. Information on measuring expected credit loss is described in 4. Risk Management (1) 2) Measurement of expected credit loss. The impact of changes of estimation on measuring expected credit loss during the current period is as follows (Unit: Korean Won in millions) Impact of changes in estimates(*) Expected credit loss allowances Loans and other financial assets at amortized cost 323,597 Guarantees and unused commitments 34,473 Financial assets at FVTOCI 1,489 Securities at amortized cost 592 Total 360,151 (*) The effects of changes in probability of default and loss given default are 212,428 million Won and 147,723 million Won, respectively. < Woori Financial Capital Co., Ltd > Impact of changes in estimates Expected credit loss allowances Loans and other financial assets at amortized cost (19,885) Guarantees and unused commitments - Financial assets at FVTOCI - Securities at amortized cost - Total (19,885) Impact of changes in estimates Expected credit loss allowances Loans and other financial assets at amortized cost (16,467) Guarantees and unused commitments 153 Financial assets at FVTOCI - Securities at amortized cost - Total (16,314) Impact of changes in estimates Expected credit loss allowances Loans and other financial assets at amortized cost 8,338 Guarantees and unused commitments - Financial assets at FVTOCI - Securities at amortized cost - WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 56 - Total 8,338 Impact of changes in estimates Expected credit loss allowances Loans and other financial assets at amortized cost 936 Guarantees and unused commitments - Financial assets at FVTOCI - Securities at amortized cost - Total 936 4) Defined benefit plan The Group operates a defined benefit pension plan. Defined benefit obligation is calculated at every end of the reporting period by performing actuarial valuation, and estimation of assumptions such as discount rate, expected wage growth rate and mortality rate is required to perform such actuarial valuation. The defined benefit plan, due to its long-term nature, contains significant uncertainties in its estimates. 5) Impairment of goodwill The recoverable amount of a cash generating unit (CGU) is determined based on value-in-use calculations. WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 57 - 4. RISK MANAGEMENT The Group is exposed to various risks that may arise from its operating activities and the main types of risks are credit risk, market risk, liquidity risk and etc. The Risk Management Organization analyzes and assesses the level of complex risks in order to manage the risks and the risk management standards such as policies, regulations, management systems and decision-making have been established and operated for sound management of the Group. The risk management organization is operated by Risk Management Committee, Chief Risk Officer(CRO), and Risk Management Department. The Board of Directors operates a Risk Management Committee comprised of outside directors for professional risk management. The Risk Management Committee plays a role as the top decision-making body in risk management by establishing basic policies for risk management that are in line with the Group’s management strategy and determining the risk level that the Group is willing to take. The Chief Risk Officer (CRO) assists the Risk Management Committee and operates a Group Risk Management Council comprised of risk management managers of subsidiaries to periodically check and improve the risk burden of external environments and the Group. The risk management department is independent and is in charge of risk management of the Group. It also supports reporting and decision- making of key risk-related issues. (1) Credit risk Credit risk represents the possibility of financial losses incurred due to the refusal of the transaction or when the counterparty fails to fulfill its contractual obligations. The goal of credit risk management is to maintain the Group’s credit risk exposure to a permissible degree and to optimize its rate of return considering such credit risk. 1) Credit risk management To measure credit risk, the Group considers the possibility of failure in performing the obligation by the counterparties, credit exposure to the counterparty, the related default risk and the rate of default loss. The Group uses the credit rating model to assess the possibility of counterparty’s default risk; and when assessing the obligor’s credit rating, other than quantitative methods utilizing financial statements and others, and assessor’s judgement, the Group utilizes credit rating derived using statistical methods. In order to manage credit risk limit, the Group establishes the appropriate credit line per obligor, company or industry by monitoring obligor’s credit line, total exposures and loan portfolios when approving the loan. The Group mitigates credit risk resulting from the obligor’s credit condition by using financial and physical collateral, guarantees, netting agreements and purchase of credit derivatives that have low correlation with the obligor’s credit status. The Group has adopted the comprehensive method to mitigate its credit risk. Credit risk mitigation is reflected in qualifying financial collateral, trade receivables, guarantees, residential and commercial real estate and other collaterals. The Group regularly performs a revaluation of collateral reflecting such credit risk mitigation. WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 58 - 2) Measurement of expected credit loss K-IFRS 1109 requires entities to measure loss allowance equal to 12-month expected credit losses or lifetime expected credit losses after classifying financial assets into one of the three stages, depending on the degree of increase in credit risk since their initial recognition. Classification Stage 1 Stage 2 Stage 3 Definition No significant increase in credit risk after initial recognition (*) Significant increase in credit risk after initial recognition Credit- impaired Loss allowance 12-month expected credit losses: Lifetime expected credit losses: Expected credit losses that result from those default events on the financial instrument that are possible within 12 months after the reporting date Expected credit losses that result from all possible default events over the life of the financial instrument (*) If the financial instrument has low credit risk at the end of the reporting period, the Group may assume that the credit risk has not increased significantly since initial recognition. Loss allowance under credit impairment model is measured as the cumulative change in lifetime expected credit loss since initial recognition. At the end of each reporting period the Group assesses whether credit risk has significantly been increased since the date of initial recognition. The Group assesses whether the credit risk has increased significantly since initial recognition by using credit rating, asset quality level, early warning system, days past due and others. For financial assets whose contractual cash flows have been modified, the Group assesses whether there is a significant increase in credit risk on the same basis. The Group performs the below assessment to both corporate and retail exposures, and indicators of significant increase in credit risk are as follows: Corporate Exposures Retail Exposures Asset quality level ‘Precautionary’ or lower Asset quality level ‘Precautionary’ or lower More than 30 days past due More than 30 days past due ‘Warning’ level in early warning system Significant decrease in credit rating(*) Debtor experiencing financial difficulties (Capital impairment, Adverse opinion or Disclaimer of opinion by external auditors) Deferment of repayment of principal and interest Significant decrease in credit rating (*) Deferment of interest Deferment of repayment of principal and interest Deferment of interest (*) The Group has applied the below indicators of significant decrease in credit rating since initial recognition as follows, and the estimation method is regularly being monitored Credit rating Significant increased indicator of the credit rating Corporate AAA ~ A+ More than or equal to 4 steps A- ~ BBB More than or equal to 3 steps BBB- ~ BB+ More than or equal to 2 steps BB ~ BB- More than or equal to 1 step Retail 1 ~ 3 More than or equal to 3 steps 4 ~ 5 More than or equal to 2 steps 6 ~ 10 More than or equal to 1 step WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 59 - The Group determined that there is no significant increase in credit risk after initial recognition for debt securities, etc. with a credit rating of A + or higher, which are deemed to have low credit risk at the end of the reporting period. The Group concludes that credit is impaired when financial assets are under conditions stated below: - When principal and interest of loan is overdue for 90 days or longer due to significant deterioration in credit - For loans overdue for less than 90 days, when it is determined that not even a portion of the loan will be recovered unless claim actions such as disposal of collaterals are taken - When other objective indicators of impairment have been noted for the financial asset. The Group has estimated the allowance for credit losses using an estimation model that additionally reflects the forward looking information based on the past experience loss rate data. Loss allowance is calculated by applying PD (Probability of Default) and LGD (Loss Given Default) estimated for each financial asset in consideration of factors such as obligor type, credit rating and portfolio. The estimates are regularly being reviewed in order to reduce discrepancies with actual losses. In measuring the expected credit losses, the Group is also using reasonable and supportable macroeconomic indicators such as GDP growth rate, Personal consumption expenditures increase/decrease rate, consumer price index change rate in order to forecast future economic conditions. The Group is conducting the following procedures to estimate and apply forward looking information. - Development of estimation models through regression analysis of corporate retail/year-by-year default rate and macroeconomic indicator data by year Major macroeconomic indicators Correlation between credit risk and macroeconomic indicators GDP growth rate Negative(-) Correlation Personal consumption expenditures increase/decrease rate Negative(-) Correlation Won-dollar exchange rate Positive(+) Correlation - Calculation of estimated default rate incorporating forward looking by applying estimated macroeconomic indicators provided by verified institutions such as Bank of Korea and National Assembly Budget Office to the estimation model developed - Forecast of macroeconomic variables a) Probability weight As of December 31, 2023, the probability weights applied to the scenarios of the forecasts of macroeconomic variables is as follows (Unit: %): Base Scenario Upside Scenario Downside Scenario Worst Scenario Probability weight 44.36 9.41 26.23 20 WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 60 - b) Economic forecast of each major macroeconomic variables by scenario (prospect period: 2024) As of December 31, 2023, the forecasts of major macroeconomic variables by scenario is as follows (Unit: Won, %) Base Scenario Upside Scenario Downside Scenario Worst Scenario GDP growth rate 2.1 2.29 1.76 (-)5.10 Personal consumption expenditures increase/decrease rate 1.9 2.27 1.23 (-)12.22 Won-dollar exchange rate 1,263 1,255 1,277 1,560 The results of Woori Bank's sensitivity analysis on expected credit loss provisions due to changes in macroeconomic indicators as of December 31, 2023 and 2022 are as follows (Unit: Korean Won in millions): December 31, 2023 Corporate Personal consumption expenditures increase/decrease rate Increase by 1% point (46,211) Decrease by 1% point 52,862 Retail Consumer price index change rate (*2) Increase by 1% point - Decrease by 1% point - December 31, 2022 Corporate Personal consumption expenditures increase/decrease rate Increase by 1% point (59,987) Decrease by 1% point 68,036 Retail Consumer price index change rate(*2) Increase by 1% point (24,164) Decrease by 1% point 28,042 (*1) The sensitivity of the effect of the GDP growth rate on banks' ECLs is not significant. (*2) The consumer price index was excluded from the estimation model of the forward looking for the year ended December 31, 2023. - The increase rate between the measured default rate and the predicted default rate is used as a forward looking adjustment coefficient and reflected to the applicable estimate for the current year. WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 61 - 3) Maximum exposure The Group’s maximum exposure to credit risk shows the uncertainties related to the maximum possible variation of financial assets’ net value as a result of changes in the specific risk factors, prior to the consideration of collaterals that are recorded at net carrying amount after allowances and other credit enhancements. However, the maximum exposure is the fair value amount (recorded on the books) for derivatives, maximum contractual obligation for payment guarantees and unused amount of commitments for loan commitment. The maximum exposure to credit risk as of December 31, 2023 and 2022 is as follows (Unit: Korean Won in millions): December 31, 2023 December 31, 2022 Loans and other financial assets at amortized cost (*1) Korean treasury and government agencies 2,297,088 2,877,685 Banks 21,996,558 21,571,097 Corporates 159,343,530 143,507,852 Consumers 189,510,972 187,804,095 Sub-total 373,148,148 355,760,729 Financial assets at FVTPL (*2) Deposits 39,241 34,995 Debt securities 6,307,238 4,270,532 Loans 782,716 899,228 Derivative assets 5,798,329 8,206,181 Others 2,585 1,505 Sub-total 12,930,109 13,412,441 Financial assets at FVTOCI Debt securities 36,694,111 32,145,758 Securities at amortized cost Debt securities 23,996,172 28,268,516 Derivative assets Derivative assets (Designated for hedging) 26,708 37,786 Off-balance accounts Payment guarantees (*3) 13,793,301 11,921,586 Loan commitments 126,829,192 118,172,070 Sub-total 140,622,493 130,093,656 Total 587,417,741 559,718,886 (*1) Cash and cash equivalents are not included. (*2) Puttable financial instruments are not included. (*3) As of December 31, 2023 and 2022, the financial guarantee amount of 3,661,656 million Won and 3,095,091 million Won are included, respectively. WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 62 - a) Credit risk exposure by geographical areas The following tables analyze credit risk exposure by geographical areas (Unit: Korean Won in millions): December 31, 2023 Korea China USA UK Japan Others (*) Total Loans and other financial assets at amortized cost 345,748,021 5,068,801 5,527,208 260,834 617,188 15,926,096 373,148,148 Securities at amortized cost 22,529,414 111,832 1,049,669 - - 305,257 23,996,172 Financial assets at FVTPL 10,103,182 519 1,507,518 355,478 143,229 820,183 12,930,109 Financial assets at FVTOCI 32,422,652 724,786 2,367,997 7 32,194 1,146,475 36,694,111 Derivative assets (Designated for hedging) 26,010 - - - 698 - 26,708 Off-balance accounts 136,287,485 921,904 745,832 20,045 26,351 2,620,876 140,622,493 Total 547,116,764 6,827,842 11,198,224 636,364 819,660 20,818,887 587,417,741 (*) Others consist of financial assets in Indonesia, Hong Kong, Germany, Australia, and other countries. December 31, 2022 Korea China USA UK Japan Others (*) Total Loans and other financial assets at amortized cost 331,572,328 5,188,826 4,721,440 215,174 719,301 13,343,660 355,760,729 Securities at amortized cost 26,883,967 642,089 421,248 16,658 - 304,554 28,268,516 Financial assets at FVTPL 9,272,673 2,607 2,210,580 318,322 168,013 1,440,246 13,412,441 Financial assets at FVTOCI 27,780,323 806,320 2,297,076 1,726 41,421 1,218,892 32,145,758 Derivative assets (Designated for hedging) 37,786 - - - - - 37,786 Off-balance accounts 126,531,020 981,139 380,209 25,644 16,987 2,158,657 130,093,656 Total 522,078,097 7,620,981 10,030,553 577,524 945,722 18,466,009 559,718,886 (*) Others consist of financial assets in Indonesia, Hong Kong, Germany, Australia, and other countries. WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 63 - b) Credit risk exposure by industries The following tables analyze credit risk exposure by industries, which are service, manufacturing, finance and insurance, construction, individuals and others in accordance with the Korea Standard Industrial Classification Code as of December 31, 2023 and 2022 (Unit: Korean Won in millions): December 31, 2023 Service Manufacturing Finance and insurance Construction Individuals Others Total Loans and other financial assets at amortized cost 84,704,246 44,591,685 30,388,823 5,583,281 185,083,452 22,796,661 373,148,148 Securities at amortized cost 189,193 - 14,151,799 69,720 - 9,585,460 23,996,172 Financial assets at FVTPL 330,193 233,528 7,184,371 81,731 2,600 5,097,686 12,930,109 Financial assets at FVTOCI 453,694 408,377 25,832,327 290,856 - 9,708,857 36,694,111 Derivative assets (Designated for hedging) - - 26,708 - - - 26,708 Off-balance accounts 22,561,220 22,897,412 13,804,163 2,826,738 73,042,394 5,490,566 140,622,493 Total 108,238,546 68,131,002 91,388,191 8,852,326 258,128,446 52,679,230 587,417,741 December 31, 2022 Service Manufacturing Finance and insurance Construction Individuals Others Total Loans and other financial assets at amortized cost 78,173,716 37,013,486 31,485,795 5,613,480 183,167,572 20,306,680 355,760,729 Securities at amortized cost 239,141 - 16,198,175 199,924 - 11,631,276 28,268,516 Financial assets at FVTPL 200,678 184,019 9,776,234 51,244 1,167 3,199,099 13,412,441 Financial assets at FVTOCI 417,877 231,132 22,249,839 48,225 - 9,198,685 32,145,758 Derivative assets (Designated for hedging) - - 37,786 - - - 37,786 Off-balance accounts 18,661,383 22,492,863 10,523,731 3,143,673 69,404,456 5,867,550 130,093,656 Total 97,692,795 59,921,500 90,271,560 9,056,546 252,573,195 50,203,290 559,718,886 WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 64 - 4) Credit risk exposure a) Financial assets The maximum exposure to credit risk by asset quality, except for financial assets at FVTPL and derivative asset (designated for hedging) as of December 31, 2023 and 2022 is as follows (Unit: Korean Won in millions): December 31, 2023 Collateral value Stage1 Stage2 Stage3 Credit impairment model Total Loans and other financial assets at amortized cost 224,611,919 21,235,346 767,731 768,275 247,383,271 Korean treasury and government agencies 39,199 - - - 39,199 Banks 2,136,530 - - - 2,136,530 Corporates 92,544,712 5,915,710 382,605 768,275 99,611,302 General business 52,951,331 4,058,593 169,855 - 57,179,779 Small- and medium-sized enterprise 33,580,230 1,590,947 112,117 - 35,283,294 Project financing and others 6,013,151 266,170 100,633 768,275 7,148,229 Consumers 129,891,478 15,319,636 385,126 - 145,596,240 Securities at amortized cost - - - - - Financial assets at FVTOCI (*3) - - - - - Total 224,611,919 21,235,346 767,731 768,275 247,383,271 (*1) Credit grade of corporates are AAA ~ BBB, and consumers are grades 1 ~ 6. (*2) Credit grade of corporates are BBB- ~ C, and consumers are grades 7 ~ 10. (*3) Financial assets at FVTOCI has been disclosed as the amount before deducting loss allowance because loss allowance does not reduce the carrying amount. December 31, 2023 Stage 1 Stage 2 Above appropriate credit rating (*1) Less than a limited credit rating (*2) Above appropriate credit rating (*1) Less than a limited credit rating (*2) Stage 3 Credit impairment model Total Loss allowance Total, net Loans and other financial assets at amortized cost 321,115,435 26,073,686 12,728,437 13,702,855 1,906,434 768,487 376,295,334 (3,147,186) 373,148,148 Korean treasury and government agencies 2,299,323 21 - - - - 2,299,344 (2,256) 2,297,088 Banks 21,880,151 122,383 21,771 - 15,295 - 22,039,600 (43,042) 21,996,558 Corporates 132,702,723 18,890,349 2,630,918 5,411,611 882,459 768,487 161,286,547 (1,943,017) 159,343,530 General business 87,551,345 10,147,028 1,773,713 3,150,829 548,169 - 103,171,084 (1,161,824) 102,009,260 Small- and medium- sized enterprise 36,220,660 8,182,558 753,275 1,587,473 225,463 - 46,969,429 (508,736) 46,460,693 Project financing and others 8,930,718 560,763 103,930 673,309 108,827 768,487 11,146,034 (272,457) 10,873,577 Consumers 164,233,238 7,060,933 10,075,748 8,291,244 1,008,680 - 190,669,843 (1,158,871) 189,510,972 Securities at amortized cost 24,010,113 - - - - - 24,010,113 (13,941) 23,996,172 Financial assets at FVTOCI (*3) 36,481,028 213,083 - - - - 36,694,111 (27,379) 36,694,111 Total 381,606,576 26,286,769 12,728,437 13,702,855 1,906,434 768,487 436,999,558 (3,188,506) 433,838,431 WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 65 - December 31, 2022 Collateral value Stage1 Stage2 Stage3 Credit impairment model Total Loans and other financial assets at amortized cost 213,228,740 19,354,919 607,614 313,717 233,504,990 Korean treasury and government agencies 24,276 - - - 24,276 Banks 1,858,595 - - - 1,858,595 Corporates 82,314,488 4,982,087 316,085 313,717 87,926,377 General business 44,465,799 3,390,139 194,597 - 48,050,535 Small- and medium-sized enterprise 32,503,289 1,537,173 84,798 - 34,125,260 Project financing and others 5,345,400 54,775 36,690 313,717 5,750,582 Consumers 129,031,381 14,372,832 291,529 - 143,695,742 Securities at amortized cost - - - - - Financial assets at FVTOCI (*3) - - - - - Total 213,228,740 19,354,919 607,614 313,717 233,504,990 (*1) Credit grade of corporates are AAA ~ BBB, and consumers are grades 1 ~ 6. (*2) Credit grade of corporates are BBB- ~ C, and consumers are grades 7 ~ 10. (*3) Financial assets at FVTOCI has been disclosed as the amount before deducting loss allowance because loss allowance does not reduce the carrying amount. December 31, 2022 Stage 1 Stage 2 Above appropriate credit rating (*1) Less than a limited credit rating (*2) Above appropriate credit rating (*1) Less than a limited credit rating (*2) Stage 3 Credit impairment model Total Loss allowance Total, net Loans and other financial assets at amortized cost 308,498,799 23,391,187 13,061,081 11,533,632 1,447,967 313,717 358,246,383 (2,485,654) 355,760,729 Korean treasury and government agencies 2,879,057 39 - - - - 2,879,096 (1,411) 2,877,685 Banks 21,182,445 393,181 2,125 - 18,053 - 21,595,804 (24,707) 21,571,097 Corporates 120,407,588 16,680,863 2,556,885 4,429,148 637,187 313,717 145,025,388 (1,517,536) 143,507,852 General business 74,939,770 9,291,691 1,754,620 3,083,232 421,659 - 89,490,972 (1,016,039) 88,474,933 Small- and medium- sized enterprise 34,965,279 6,751,297 754,668 1,257,741 173,818 - 43,902,803 (400,328) 43,502,475 Project financing and others 10,502,539 637,875 47,597 88,175 41,710 313,717 11,631,613 (101,169) 11,530,444 Consumers 164,029,709 6,317,104 10,502,071 7,104,484 792,727 - 188,746,095 (942,000) 187,804,095 Securities at amortized cost 28,276,901 - - - - - 28,276,901 (8,385) 28,268,516 Financial assets at FVTOCI (*3) 31,914,193 231,565 - - - - 32,145,758 (11,805) 32,145,758 Total 368,689,893 23,622,752 13,061,081 11,533,632 1,447,967 313,717 418,669,042 (2,505,844) 416,175,003 WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 66 - b) Payment Guarantees and commitments The credit quality of the payment guarantees and loan commitments as of December 31, 2023 and 2022 are as follows (Unit: Korean Won in millions): December 31, 2023 Financial assets Stage 1 Stage 2 Stage3 Total Above appropriate credit rating (*1) Less than a limited credit rating (*2) Above appropriate credit rating (*1) Less than a limited credit rating (*2) Off-balance accounts: Payment Guarantees 12,515,536 1,150,185 73,192 40,890 13,498 13,793,301 Loan Commitments 120,623,982 3,512,099 2,166,380 496,824 29,907 126,829,192 Total 133,139,518 4,662,284 2,239,572 537,714 43,405 140,622,493 (*1) Credit grade of corporates are AAA ~ BBB, and consumers are grades 1 ~ 6. (*2) Credit grade of corporate are BBB- ~ C, and consumers are grades 7 ~ 10. December 31, 2022 Financial assets Stage 1 Stage 2 Stage3 Total Above appropriate credit rating (*1) Less than a limited credit rating (*2) Above appropriate credit rating (*1) Less than a limited credit rating (*2) Off-balance accounts: Payment Guarantees 10,790,470 846,997 25,826 245,061 13,232 11,921,586 Loan Commitments 113,169,542 2,610,173 1,638,982 753,139 234 118,172,070 Total 123,960,012 3,457,170 1,664,808 998,200 13,466 130,093,656 (*1) Credit grade of corporates are AAA ~ BBB, and consumers are grades 1 ~ 6. (*2) Credit grade of corporate are BBB- ~ C, and consumers are grades 7 ~ 10. 5) Collateral and other credit enhancements For the years ended December 31, 2023 and 2022, there have been no significant changes in the value of collateral or other credit enhancements held by the Group and there have been no significant changes in collateral or other credit enhancements due to changes in the collateral policy of the Group. 6) Among financial assets that measured loss allowance at lifetime expected credit losses, amortized costs before changes in contractual cash flows as of December 31, 2023 and 2022 are 161,893 million Won and 149,511 million Won, respectively, with net losses recognized along with the changes 5,107 million Won and 8,474 million Won, respectively. 7) The Group determines which loan is subject to write-off in accordance with internal guidelines and writes off loan receivables when it is determined that the loans are practically irrecoverable. For example, loans are practically irrecoverable when application is made for rehabilitation under the Debtor Rehabilitation and Bankruptcy Act and loans are confirmed as irrecoverable by the court’s decision to waive debtor’s obligation, or when it is impossible to recover the loan amount through legal means such as auctioning of debtor’s assets or through any other means of recovery available. As the Group manages receivables that have not lost the right of claim to the debtor for the grounds of incomplete statute limitation and uncollected receivables under the related laws as receivable charge-offs, the balance as of December 31, 2023 and 2022 are 10,089,739 million Won and 9,825,284 million Won. In addition, the contractual non-recoverable amount of financial assets amortized for the year ended December 31, 2023, but still in the process of recovery is 1,599,465 million Won. WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 67 - (2) Market risk Market risk is the possible risk of loss arising from trading position and non-trading position as a result of the volatility of market factors such as interest rates, stock prices and foreign exchange rates. 1) Market risk management Market risk management refers to the process of making and implementing decisions for the avoidance, acceptance or mitigation of risks by identifying the underlying source of the risks, measuring its level, and evaluating the appropriateness of the level of accepted market risks for both trading and non-trading activities. a) Trading activities The Group uses the standard approach and internal model approach (Woori Bank) in measuring market risk for trading positions, and allocates market risk capital through the Risk Management Committee. Risk management departments of the Group and its subsidiaries manage limits in detail including those on risk and loss with their management result regularly reported to the Risk Management Committee. Subsidiaries such as Woori Bank manage market internal capital limits using the Basel III standard approach, and other subsidiaries manage market risks by applying the simple method. The Basel III standard approach consists of a sensitivity method that measures linear and nonlinear losses that may occur due to unfavorable fluctuations in market risk factors, bankruptcy risks that may occur due to sudden bankruptcy, and residual risk-bearing equity capital for other losses. Woori Bank, a major subsidiary subject to Basel III standard approach of market risk management, has the following equity capital required for market risk.(Unit : Korean Won in millions) Risk Group December 31, 2023 Sensitivity-based risk General interest rate risk 37,832 Equity risk 9,376 Commodity risk 12 Foreign exchange risk 249,044 Non-securitization credit spread risk 27,371 Securitization (excluding CTP (Correlation Trading Portfolio)) credit spread risk - CTP credit spread risk - Default risk Non-Securitization bankruptcy risk - Securitization (excluding CTP) default risk - CTP default risk - Residual risk Residual risk 692 Total 324,327 The minimum, maximum and average VaR for the year December 31, 2022 and the VaR as of December 31, 2022 are as follows (Unit: Korean Won in millions): December 31, 2022 For the year ended December 31, 2022 Risk factor Average Maximum Minimum Interest rate 11,800 8,847 11,987 4,298 Stock price 7,055 6,590 12,448 1,806 Foreign currencies 17,608 14,002 22,251 5,421 Diversification (17,354) (12,725) (19,640) (4,201) Total VaR(*) 19,109 16,714 27,046 7,324 (*) VaR (Value at Risk): Retention period of 1 day, Maximum expected losses under 99% level of confidence. WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 68 - b) Non-trading activities From the end of 2019 for the Bank and the beginning of 2021 for non-banking subsidiaries, the Bank and its subsidiaries manage and measure interest risk for non-trading activities through △NII(Change in Net Interest Income) and △EVE(Change in Economic Value of Equity) in accordance with IRRBB(Interest Rate Risk in the Banking Book). △NII represents a change in net interest income that may occur over a certain period (e.g. one year) due to changes in interest rates, and △EVE indicates the economic value changes in equity capital that could be caused by changes in interest rates affecting the present value of asset, liabilities, and off- balance accounts. △EVE and △NII calculated on interest risk in banking book(IRRBB) basis for assets and liabilities by subsidiary as of December 31, 2023 and 2022 are as follows(Unit: Korean Won in millions): December 31, 2023 December 31, 2022 △EVE (*1) △NII (*2) △EVE (*1) △NII (*2) Woori Bank 683,660 743,489 411,447 448,509 Woori Card Co., Ltd. 80,720 76,846 139,005 185,637 Woori Financial Capital Co., Ltd. 48,523 17,585 43,098 13,814 Woori Investment Bank Co., Ltd. 4,464 15,303 26,311 8,229 Woori Asset Trust Co., Ltd. 1,210 7,018 1,137 6,736 Woori Asset Management Corp. 832 2,154 913 1,299 Woori Savings Bank 7,347 11,077 6,618 10,348 Woori Private Equity Asset Management Co., Ltd. 80 775 547 886 Woori Global Asset Management Co., Ltd. 536 269 251 538 Woori Financial F&I Co., Ltd. 63,852 3,961 26,069 219 Woori Venture Partners Co., Ltd.(*3) 340 2782 - - (*1) △EVE: change in Economic Value of Equity (*2) △NII: change in Net Interest Income (*3) Additional investment occurred and added it as a consolidated subsidiary during the year ended December 31, 2023. WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 69 - At the interest rate re-pricing date, cash flows (both principal and interest) of interest bearing assets and liabilities, which is the basis of non-trading position interest rate risk management are as follows: (Unit: Korean Won in millions): December 31, 2023 Within 3 months 4 to 6 months 7 to 9 months 10 to 12 months 1 to 5 years Over 5 years Total Asset: Loans and other financial assets at amortized cost 245,179,685 55,105,699 17,928,072 12,101,395 55,840,540 3,594,287 389,749,678 Financial assets at FVTPL 2,155,339 178,206 37,672 22,719 52,341 90 2,446,367 Financial assets at FVTOCI 5,976,531 3,489,341 2,425,700 3,008,905 22,852,783 756,272 38,509,532 Securities at amortized cost 1,451,409 1,230,486 3,335,565 1,416,082 15,907,380 2,171,914 25,512,836 Total 254,762,964 60,003,732 23,727,009 16,549,101 94,653,044 6,522,563 456,218,413 Liability: Deposits due to customers 169,127,109 52,395,270 32,948,424 47,030,448 60,621,757 34,406 362,157,414 Borrowings 20,147,327 5,157,330 1,933,137 2,575,993 4,112,788 437,839 34,364,414 Debentures 7,741,466 5,188,081 4,104,309 5,168,597 18,443,853 3,223,255 43,869,561 Total 197,015,902 62,740,681 38,985,870 54,775,038 83,178,398 3,695,500 440,391,389 December 31, 2022 Within 3 months 4 to 6 months 7 to 9 months 10 to 12 months 1 to 5 years Over 5 years Total Asset: Loans and other financial assets at amortized cost 224,863,400 56,669,335 15,469,920 15,108,779 59,454,649 5,963,926 377,530,009 Financial assets at FVTPL 1,888,996 119,725 1,364 4,670 71,620 13,129 2,099,504 Financial assets at FVTOCI 6,093,805 4,224,460 3,014,625 3,550,982 15,409,527 584,203 32,877,602 Securities at amortized cost 2,749,432 1,806,804 1,768,936 1,427,736 20,126,354 2,100,203 29,979,465 Total 235,595,633 62,820,324 20,254,845 20,092,167 95,062,150 8,661,461 442,486,580 Liability: Deposits due to customers 167,237,029 49,107,093 33,506,265 40,006,233 55,855,781 69,861 345,782,262 Borrowings 14,829,024 4,159,096 1,542,340 1,183,331 6,654,602 472,325 28,840,718 Debentures 9,068,737 4,905,727 4,633,137 4,962,350 19,621,659 3,298,581 46,490,191 Total 191,134,790 58,171,916 39,681,742 46,151,914 82,132,042 3,840,767 421,113,171 2) Currency risk Currency risk arises from the financial instruments denominated in foreign currencies other than the functional currency. Therefore, no currency risk arises from non-monetary items or financial instruments denominated in the functional currency. Financial instruments in foreign currencies exposed to currency risk as of December 31, 2023 and 2022 are as follows (Unit: USD in millions, JPY in millions, CNY in millions, EUR in millions, and Korean Won in millions): WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 70 - December 31, 2023 USD JPY CNY EUR Others Total Foreign currency Korean Won equivalent Foreign currency Korean Won equivalent Foreign currency Korean Won equivalent Foreign currency Korean Won equivalent Korean Won equivalent Korean Won equivalent Asset Cash and cash equivalents 8,540 11,011,576 108,421 989,519 1,377 248,965 641 914,960 1,145,464 14,310,484 Loans and other financial assets at amortized cost 24,463 31,542,764 138,242 1,261,674 30,536 5,522,075 1,791 2,554,897 4,585,588 45,466,998 Financial assets at FVTPL 884 1,140,110 49,640 453,047 - - 280 399,828 72,351 2,065,336 Financial assets at FVTOCI 3,136 4,044,155 - - 3,882 701,938 6 8,549 738,710 5,493,352 Securities at amortized cost 1,223 1,576,690 - - 618 111,839 68 97,393 184,938 1,970,860 Total 38,246 49,315,295 296,303 2,704,240 36,413 6,584,817 2,786 3,975,627 6,727,051 69,307,030 Liability Financial liabilities at FVTPL 350 451,700 23,806 217,266 - - 209 297,521 98,885 1,065,372 Deposits due to customers 23,962 30,896,247 279,377 2,549,759 23,162 4,188,690 2,122 3,027,521 5,531,242 46,193,459 Borrowings 9,339 12,041,139 70,741 645,621 1,658 299,748 225 321,529 2,632,379 15,940,416 Debentures 4,811 6,202,675 - - - - 195 277,871 - 6,480,546 Other financial liabilities 3,448 4,446,194 26,977 246,206 7,752 1,401,956 99 141,404 387,310 6,623,070 Total 41,910 54,037,955 400,901 3,658,852 32,572 5,890,394 2,850 4,065,846 8,649,816 76,302,863 Off-balance accounts 7,748 9,990,349 30,143 275,101 2,043 369,483 796 1,135,845 568,935 12,339,713 December 31, 2022 USD JPY CNY EUR Others Total Foreign currency Korean Won equivalent Foreign currency Korean Won equivalent Foreign currency Korean Won equivalent Foreign currency Korean Won equivalent Korean Won equivalent Korean Won equivalent Asset Cash and cash equivalents 9,041 11,457,194 64,824 617,888 1,542 279,779 484 653,870 1,022,909 14,031,640 Loans and other financial assets at amortized cost 24,361 30,872,442 116,298 1,108,529 24,637 4,470,059 2,510 3,391,155 4,952,002 44,794,187 Financial assets at FVTPL 970 1,229,059 25,416 242,260 - - 358 484,172 176,057 2,131,548 Financial assets at FVTOCI 3,307 4,191,383 - - 3,999 725,511 2 2,573 725,271 5,644,738 Securities at amortized cost 576 729,811 - - 3,540 642,214 69 93,250 206,497 1,671,772 Total 38,255 48,479,889 206,538 1,968,677 33,718 6,117,563 3,423 4,625,020 7,082,736 68,273,885 Liability Financial liabilities at FVTPL 415 526,553 26,766 255,128 - - 322 434,590 274,895 1,491,166 Deposits due to customers 24,569 31,135,881 227,260 2,166,196 28,125 5,102,886 2,108 2,847,863 5,008,487 46,261,313 Borrowings 6,894 8,737,229 44,365 422,876 1,023 185,652 431 582,034 2,179,085 12,106,876 Debentures 4,174 5,289,246 - - - - 195 263,187 339,188 5,891,621 Other financial liabilities 3,040 3,852,255 8,685 82,783 4,295 779,233 380 513,285 200,249 5,427,805 Total 39,092 49,541,164 307,076 2,926,983 33,443 6,067,771 3,436 4,640,959 8,001,904 71,178,781 Off-balance accounts 6,698 8,488,374 34,512 328,964 1,141 207,012 787 1,063,680 868,470 10,956,500 WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 71 - (3) Liquidity risk Liquidity risk refers to the risk that the Group may encounter difficulties in meeting obligations from its financial liabilities. 1) Liquidity risk management Liquidity risk management is to prevent potential cash shortages as a result of mismatching maturity of assets and liabilities or unexpected cash outflows. The consolidated financial liabilities that are relevant to liquidity risk are incorporated within the scope of risk management. Derivatives instruments are excluded from those financial liabilities as they reflect expected cash flows for a pre-determined period. Assets and liabilities are grouped by account under Asset Liability Management (“ALM”) in accordance with the characteristics of the account. The Group manages liquidity risk by identifying the maturity gap and such gap ratio through various cash flows analysis (i.e. based on remaining maturity and contract period, etc.), while maintaining the gap ratio at or below the target limit. The information on early repayment related to asset securitization is described in NOTE 40. CONTINGENT LIABILITIES AND COMMITMENTS (4) 5). 2) Maturity analysis of non-derivative financial liabilities a) Cash flows of principals and interests by remaining contractual maturities of non-derivative financial liabilities as of December 31, 2023 and 2022 are as follows (Unit: Korean Won in millions): December 31, 2023 Within 3 months 4 to 6 months 7 to 9 months 10 to 12 months 1 to 5 years Over 5 years Total Financial liabilities at FVTPL 39,524 89,287 - - 10,256 56,221 195,288 Deposits due to customers 236,125,560 39,103,357 22,776,074 50,089,672 16,898,791 1,549,490 366,542,944 Borrowings 11,415,214 6,626,722 4,345,143 4,579,032 4,331,196 437,839 31,735,146 Debentures 5,510,096 5,328,382 5,383,741 6,035,590 18,439,577 3,223,255 43,920,641 Lease liabilities 74,228 42,106 58,241 33,679 151,127 25,172 384,553 Other financial liabilities 15,059,935 233,081 21,356 26,403 1,025,252 4,195,930 20,561,957 Total 268,224,557 51,422,935 32,584,555 60,764,376 40,856,199 9,487,907 463,340,529 December 31, 2022 Within 3 months 4 to 6 months 7 to 9 months 10 to 12 months 1 to 5 years Over 5 years Total Financial liabilities at FVTPL 35,161 - - - - 12,113 47,274 Deposits due to customers 228,890,427 36,851,103 24,091,740 42,652,679 14,999,516 1,522,830 349,008,295 Borrowings 8,969,648 5,734,715 3,210,812 3,156,211 7,457,240 484,909 29,013,535 Debentures 6,348,064 6,841,379 5,211,032 5,214,942 19,621,659 3,298,581 46,535,657 Lease liabilities 68,279 36,724 35,136 29,646 151,379 33,007 354,171 Other financial liabilities 14,409,376 113,049 19,370 20,315 765,870 3,037,563 18,365,543 Total 258,720,955 49,576,970 32,568,090 51,073,793 42,995,664 8,389,003 443,324,475 WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 72 - b) Cash flows of principals and interests by expected maturities of non-derivative financial liabilities as of December 31, 2023 and 2022 are as follows (Unit: Korean Won in millions): December 31, 2023 Within 3 months 4 to 6 months 7 to 9 months 10 to 12 months 1 to 5 years Over 5 years Total Financial liabilities at FVTPL 39,524 89,287 - - 10,256 56,221 195,288 Deposits due to customers 241,935,362 41,132,677 23,468,344 44,082,420 14,717,842 505,146 365,841,791 Borrowings 11,419,501 6,630,868 4,346,740 4,579,314 4,331,196 437,839 31,745,458 Debentures 5,512,545 5,330,733 5,386,014 6,037,688 18,443,853 3,223,255 43,934,088 Lease liabilities 74,228 43,350 59,604 35,057 162,874 25,834 400,947 Other financial liabilities 15,059,935 233,081 21,356 26,403 1,025,252 4,195,930 20,561,957 Total 274,041,095 53,459,996 33,282,058 54,760,882 38,691,273 8,444,225 462,679,529 December 31, 2022 Within 3 months 4 to 6 months 7 to 9 months 10 to 12 months 1 to 5 years Over 5 years Total Financial liabilities at FVTPL 35,161 - - - - 12,113 47,274 Deposits due to customers 242,132,680 41,113,768 24,269,363 29,670,943 10,490,993 56,013 347,733,760 Borrowings 8,969,648 5,734,715 3,210,812 3,156,211 7,457,240 484,909 29,013,535 Debentures 6,348,064 6,841,379 5,211,032 5,214,942 19,621,659 3,298,581 46,535,657 Lease liabilities 68,344 36,729 35,377 29,948 157,361 38,584 366,343 Other financial liabilities 14,409,376 113,049 19,370 20,315 765,870 3,037,563 18,365,543 Total 271,963,273 53,839,640 32,745,954 38,092,359 38,493,123 6,927,763 442,062,112 3) Maturity analysis of derivative financial liabilities Derivatives held for trading purpose are not managed in accordance with their contractual maturity, since the Group holds such financial instruments with the purpose of disposing or redemption before their maturity. As such, those derivatives are incorporated as “within 3 months” in the table below. Derivatives designated for hedging purpose are estimated by offsetting cash inflows and cash outflows. The cash flow by the maturity of derivative financial liabilities as of December 31, 2023 and 2022 is as follows (Unit: Korean Won in millions): Remaining maturity Within 3 months 4 to 6 months 7 to 9 months 10 to 12 months 1 to 5 years Over 5 years Total December 31, 2023 Cash flow risk hedge (1,223) (875) (590) (302) 13,689 - 10,699 Fair value risk hedge 29,176 34,370 157 35,272 30,241 - 129,216 Trading purpose 5,943,024 - - - - - 5,943,024 December 31, 2022 Cash flow risk hedge 856 905 915 1,255 50,682 - 54,613 Fair value risk hedge 25,048 16,175 31,974 18,540 118,027 (3,615) 206,149 Trading purpose 8,905,125 - - - - - 8,905,125 WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 73 - 4) Maturity analysis of off-balance accounts (Payment guarantees, commitments, and etcs) A payment guarantee represents an irrevocable undertaking that the Group should meet a customer’s obligations to third parties if the customer fails to do so. The loan commitment represents the limit if the Group has promised a credit to the customer. Loan commitments include commercial standby facilities and credit lines, liquidity facilities to commercial paper conduits and utilized overdraft facilities. The maximum limit to be paid by the Group in accordance with guarantees and loan commitment only applies to principal amounts. There are contractual maturities for payment guarantees, such as financial guarantees for debentures issued or loans, unused loan commitments, and other credits, however, under the terms of the guarantees and unused loan commitments, funds should be paid upon demand from the counterparty. Details of off-balance accounts as of December 31, 2023 and 2022 are as follows (Unit: Korean Won in millions): December 31, 2023 December 31, 2022 Payment guarantees 13,793,301 11,921,586 Loan commitments 126,829,192 118,172,070 Other commitments 4,854,099 4,602,429 (4) Operational risk The Group defines the operational risk that could cause a negative effect on capital resulting from inadequate internal process, labor work and systematic problem or external factors. 1) Operational risk management The Group has established and operated a group operational risk management system to cope with new Basel III global regulations, which is implemented since 2023, and the management of operational risks follows the procedures for risk recognition, evaluation, measurement, monitoring and reporting, risk control and mitigation. 2) Operational risk measurement The Group applies the standard approach for the purpose of calculating operational risk required equity capital. - The standard approach is to calculate operational risk required equity capital by multiplying the Business Indicator Component(BIC), which is calculated by multiplying Business Indicator(BI) that is a measure based on consolidated financial statements and adjustment coefficient, and the Internal Loss Multiplier(ILM), an adjusted multiplier based on the average past loss and operating index. “Operational risk required equity capital” = Business Indicator Component (BIC) × Internal Loss Multiplier(ILM) “Business Indicator Component(BIC)” = Business Index(BI) × Adjustment Coefficient “Internal Loss Multiplier(ILM)” = ln (exp(1)-1 + (Loss Component(LC)/Business Indicator Component(BIC)^0.8) Bucket Business Index (BI) section The coefficient 1 1.4 trillion Won or less 12% 2 More than 1.4 trillion Won and less than or equal to 42 trillion Won 15% 3 Over 42 trillion Won 18% WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 74 - (5) Capital management The Group complies with the standard of capital adequacy provided by financial regulatory authorities. The capital adequacy standard is based on Basel Ⅲ published by Basel Committee on Banking Supervision in Bank for International Settlement and was implemented in Korea in December 2013. The capital adequacy ratio is calculated by dividing own capital by asset (weighted with a risk premium – risk weighted assets) based on the consolidated financial statements of the Group. According to the above regulations, the Group is required to meet the following minimum requirements: Tier 1 common capital ratio of 8.0%, a Tier 1 capital ratio of 9.5%, and a total capital ratio of 11.5% as of December 31, 2023 and 2022. Details of the Group’s capital adequacy ratio as of December 31, 2023 and 2022 are as follows (Unit: Korean Won in millions): Details December 31, 2023(*) December 31, 2022 Tier 1 capital 26,343,941 23,757,296 Other Tier 1 capital 4,596,584 4,208,994 Tier 2 capital 3,815,920 3,437,735 Total risk-adjusted capital 34,756,445 31,404,025 Risk-weighted assets for credit risk 195,490,941 182,028,062 Risk-weighted assets for market risk 4,697,055 6,759,527 Risk-weighted assets for operational risk 19,603,749 16,519,885 Total risk-weighted assets 219,791,745 205,307,474 Common Equity Tier 1 ratio 11.99% 11.57% Tier 1 capital ratio 14.08% 13.62% Total capital ratio 15.81% 15.30% (*) The capital ratio at the end of the current period is provisional WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 75 - 5. OPERATING SEGMENTS In evaluating the results of the Group and allocating resources, the Group’s Chief Operation Decision Maker (“CODM”) utilizes the method of disclosing the financial information of the segments based on the organization of the Group. This financial information of the segments in this note is regularly reviewed by the CODM. (1) Segment by type of organization The Group’s reporting segments consist of banking, credit card, capital, comprehensive finance and other sectors, and the composition of such reporting segments was divided based on internal report data periodically reviewed by the management to evaluate the performance of the segment and make decisions on the resources to be distributed. Operational scope Banking Loans/deposits and relevant services for customers of Woori Bank Credit card Credit card, cash services, card loans and accompanying business of Woori Card Co., Ltd. Capital Installments, loans including lease financing, and accompanying business of Woori Financial Capital Co., Ltd. Investment Banking Securities operation, sale of financial instruments, project financing and other related activities for comprehensive financing of Woori Investment bank Co., Ltd. Others Woori Financial Group Inc., Woori Asset Trust Co., Ltd., Woori Asset Management Corp., Ltd., Woori Financial F&I Co., Ltd., Woori Savings Bank., Woori Credit Information Co., Ltd., Woori Fund Services Co., Ltd., Woori Private Equity Asset Management Co., Ltd., Woori Global Asset Management Co., Ltd., Woori FIS Co., Ltd. and Woori Finance Research Institute, Woori Venture Partners Co., Ltd. WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 76 - (2) The composition of each organization's sectors for the years ended December 31, 2023 and 2022 are as follows (Unit: Korean Won in millions): For the year ended December 31, 2023 Banking Credit card Capital Investment banking Others (*1) Sub-total Other adjustments (*2) Internal adjustments (*3) Consolidated Adjustments (*4) Total Net interest income 6,535,929 667,053 324,013 100,041 115,089 7,742,125 79,401 917,949 3,065 8,742,540 Non-interest income(expense) 1,475,139 121,593 129,347 44,595 2,011,486 3,782,160 14,475 (740,918) (1,960,879) 1,094,838 Impairment losses due to credit loss (894,827) (355,879) (188,682) (160,182) (119,684) (1,719,254) - (177,384) 1,722 (1,894,916) General and administrative expense (3,799,282) (285,308) (96,469) (51,496) (556,427) (4,788,982) (823) - 346,372 (4,443,433) Net operating income(expense) 3,316,959 147,459 168,209 (67,042) 1,450,464 5,016,049 93,053 (353) (1,609,720) 3,499,029 Share of gain of associates 88,788 - 395 236 3,373 92,792 (143) - 17,182 109,831 Other non-operating expense (76,312) (4,163) (2,106) (990) (972) (84,543) 3,153 353 (10,370) (91,407) Non-operating income(expense) 12,476 (4,163) (1,711) (754) 2,401 8,249 3,010 353 6,812 18,424 Net income(expense) before tax 3,329,435 143,296 166,498 (67,796) 1,452,865 5,024,298 96,063 - (1,602,908) 3,517,453 Tax expense (814,354) (31,232) (38,662) 14,423 (31,833) (901,658) - 11,099 (890,559) Net income(loss) 2,515,081 112,064 127,836 (53,373) 1,421,032 4,122,640 96,063 - (1,591,809) 2,626,894 Total assets 458,017,067 17,491,193 12,417,338 6,375,625 29,725,013 524,026,236 2,846,897 - (28,868,197) 498,004,936 Investment in associate 1,029,697 - 34,613 4,783 23,882,409 24,951,502 26,302 - (23,182,434) 1,795,370 Other assets 456,987,370 17,491,193 12,382,725 6,370,842 5,842,604 499,074,734 2,820,595 - (5,685,763) 496,209,566 Total liabilities 431,313,615 14,830,408 10,796,683 5,273,890 4,424,086 466,638,682 118,442 - (2,149,678) 464,607,446 (*1) Other segments includes gains and losses from Woori Financial Group Inc., Woori Asset Trust Co., Ltd., Woori Savings Bank, Woori Asset Management Corp., Woori Financial F&I Co., Ltd., Woori Credit Information Co., Ltd., Woori Fund Service Co., Ltd., Woori Private Equity Asset Management Co., Ltd., Woori Global Asset Management Co., Ltd., Woori FIS Co., Ltd., Woori Finance Research Institute and Woori Venture Partners Co., Ltd. (*2) Other segments includes the funds subject to Group's consolidation not included in the reporting segment. (*3) Internal reconciliation includes the adjustment of deposit insurance premiums of 464,213 million Won and fund contribution fees of 453,805 million Won from net interest income expenses to non-interest income expenses in order to present the profit and loss adjustment between reporting divisions in accordance with management accounting standards as profit and loss in accordance with accounting standards (*4) Consolidation adjustments include the elimination of 343,810 million Won of internal transactions between Woori FIS Co., Ltd., the group's IT service agency, and affiliates, and the removal of 1,482,956 million Won of dividends received by the holding company from its subsidiaries. WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 77 - For the year ended December 31, 2022 Banking Credit card Capital Investment banking Others (*1) Sub-total Other adjustments (*2) Internal adjustments (*3) Consolidated Adjustments (*4) Total Net interest income 6,603,834 675,250 376,133 117,867 73,800 7,846,884 34,307 817,543 (2,155) 8,696,579 Non-interest income(expense) 1,520,576 110,888 83,428 82,885 1,750,203 3,547,980 17,498 (761,029) (1,655,342) 1,149,107 Impairment losses due to credit loss (426,552) (238,607) (107,906) (16,491) (38,319) (827,875) - (57,992) 595 (885,272) General and administrative expense (3,914,672) (262,525) (99,872) (61,631) (493,502) (4,832,202) (409) - 302,721 (4,529,890) Net operating income(expense) 3,783,186 285,006 251,783 122,630 1,292,182 5,734,787 51,396 (1,478) (1,354,181) 4,430,524 Share of gain of associates 73,958 - 1,430 334 2,173 77,895 (182) - (7,717) 69,996 Other non-operating expense 5,563 (6,373) (1,835) (1,399) (2,386) (6,430) 2,371 1,478 (12,565) (15,146) Non-operating income(expense) 79,521 (6,373) (405) (1,065) (213) 71,465 2,189 1,478 (20,282) 54,850 Net income(expense) before tax 3,862,707 278,633 251,378 121,565 1,291,969 5,806,252 53,585 - (1,374,463) 4,485,374 Tax expense (959,298) (73,869) (68,050) (29,771) (26,739) (1,157,727) - - (3,665) (1,161,392) Net income(loss) 2,903,409 204,764 183,328 91,794 1,265,230 4,648,525 53,585 - (1,378,128) 3,323,982 Total assets 443,340,979 16,118,967 12,581,473 5,657,191 28,059,619 505,758,229 2,019,322 - (27,303,155) 480,474,396 Investment in associate 917,581 - 40,987 6,548 22,427,853 23,392,969 29,658 - (22,116,991) 1,305,636 Other assets 442,423,398 16,118,967 12,540,486 5,650,643 5,631,766 482,365,260 1,989,664 - (5,186,164) 479,168,760 Total liabilities 417,583,793 13,692,456 11,040,754 4,982,410 4,146,997 451,446,410 50,762 - (2,650,118) 448,847,054 (*1) Other segments includes gains and losses from Woori Financial Group Inc., Woori Asset Trust Co., Ltd., Woori Savings Bank, Woori Asset Management Corp., Woori Financial F&I Co., Ltd., Woori Credit Information Co., Ltd., Woori Fund Service Co., Ltd., Woori Private Equity Asset Management Co., Ltd., Woori Global Asset Management Co., Ltd., Woori FIS Co., Ltd. and Woori Finance Research Institute. (*2) Other segments includes the funds subject to Group's consolidated not included in the reporting segment. (*3) Internal reconciliation includes the adjustment of deposit insurance premiums of 423,834 million Won and fund contribution fees of 402,057 million Won from net interest income expenses to non-interest income expenses in order to present the profit and loss adjustment between reporting divisions in accordance with management accounting standards as profit and loss in accordance with accounting standards (*4) Consolidation adjustments include the elimination of 300,297 million Won of internal transactions between Woori FIS Co., Ltd., the group's IT service agency, and affiliates, and the removal of 1,272,393 million Won of dividends received by the holding company from its subsidiaries. WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 78 - (3) Operating profit or loss from external customers for the years ended December 31, 2023 and 2022 are as follows (Unit: Korean Won in millions): For the years ended December 31 Details 2023 2022 Domestic 3,055,926 3,835,809 Foreign 443,103 594,715 Total 3,499,029 4,430,524 (4) Major non-current assets as of December 31, 2023 and 2022 are as follows (Unit: Korean Won in millions): Details (*) December 31, 2023 (*) December 31, 2022 (*) Domestic 5,804,919 5,152,033 Foreign 636,820 533,354 Total 6,441,739 5,685,387 (*) Major non-current assets included joint ventures and related business investments, investment properties, Property, Plant and Equipment, and intangible assets. (5) Information about major customers The Group does not have any single customer that generates 10% or more of the Group’s total revenue for the years ended December 31, 2023 and 2022. WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 79 - 6. STATEMENTS OF CASH FLOWS (1) Details of cash and cash equivalents are as follows (Unit: Korean Won in millions): December 31, 2023 December 31, 2022 Cash 1,464,606 1,771,316 Foreign currencies 715,495 628,590 Demand deposits 28,248,420 31,729,228 Fixed deposits 128,097 90,014 Total 30,556,618 34,219,148 (2) Details of restricted cash and cash equivalents are as follows (Unit: Korean Won in millions) Counterparty December 31, 2023 Reason of restriction Due from banks in local currency: Due from BOK BOK 13,420,310 Reserve deposits under the BOK Act Due from banks in foreign currencies: Due from banks on demand Bank of Japan and others 957,627 Reserve deposits etc. Total 14,377,937 Counterparty December 31, 2022 Reason of restriction Due from banks in local currency: Due from BOK BOK 16,527,445 Reserve deposits under the BOK Act Due from banks in foreign currencies: Due from banks on demand BOK and others 6,437,717 Reserve deposits under the BOK Act and others Total 22,965,162 (3) Significant transactions of investing activities and financing activities not involving cash inflows and outflows are as follows (Unit: Korean Won in millions): For the years ended December 31 2023 2022 Changes in other comprehensive income related to valuation of financial assets at FVTOCI 725,525 (493,871) Changes in other comprehensive income related to valuation of assets of associate 2,965 612 Changes in other comprehensive income related to valuation profit or loss on cash flow hedge (16,524) (9,835) Changes in financial assets measure at FVTOCI due to debt-for-equity swap 206 14,594 Changes in the Property, plant and equipment due to the transfer of assets held-for-sale (2,504) (13,109) Transfer of investment properties to Property, Plant and Equipment 2,098 - Transfer of Property, Plant and Equipment to investment properties - 7,154 Changes in account payables related to Property, Plant and Equipment - 281 Changes in account payables related to intangible assets 11,121 (11,530) Changes in right-of-use assets and lease liabilities 219,531 194,236 WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 80 - For the years ended December 31 2023 2022 Changes in other comprehensive income related to foreign operation translation 45,080 28,746 (4) Adjustments of liabilities from financing activities in current and prior year are as follows (Unit: Korean Won in millions): For the year ended December 31, 2023 Beginning balance Cash flow Not involving cash inflows and outflows Ending balance Foreign Exchange Variation of gain(loss) on valuation of hedged items Business Combination Others (*) Borrowings 28,429,603 2,332,376 191,250 - - 33,517 30,986,746 Debentures 44,198,486 (3,227,650) 82,210 63,615 - 122,584 41,239,245 Lease liabilities 319,161 (160,673) 1,130 - - 174,838 334,456 Other liabilities 27,384 118 - - 4 641 28,147 Total 72,974,634 (1,055,829) 274,590 63,615 4 331,580 72,588,594 (*) The change in lease liabilities due to the new contract includes 210,810 million Won. For the year ended December 31, 2022 Beginning balance Cash flow Not involving cash inflows and outflows Ending balance Foreign Exchange Variation of gains on valuation of hedged items Others (*) Borrowings 24,755,459 2,881,675 760,918 - 31,551 28,429,603 Debentures 44,653,864 (484,874) 297,861 (257,910) (10,455) 44,198,486 Lease liabilities 343,213 (187,531) 4,645 - 158,834 319,161 Other liabilities 26,907 513 - - (36) 27,384 Total 69,779,443 2,209,783 1,063,424 (257,910) 179,894 72,974,634 (*) The change in lease liabilities due to the new contract includes 235,215 million Won. WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 81 - 7. FINANCIAL ASSETS AT FVTPL (1) Details of financial assets at FVTPL as of December 31, 2023 and 2022 are as follows (Unit: Korean Won in millions): December 31, 2023 December 31, 2022 Financial assets at fair value through profit or loss measured at fair value 21,544,756 19,860,573 (2) Financial assets at fair value through profit or loss measured at fair value as of December 31, 2023 and 2022 are as follows (Unit: Korean Won in millions): December 31, 2023 December 31, 2022 Deposits: Gold banking asset 39,241 34,995 Securities: Debt securities Korean treasury and government agencies 4,310,612 2,754,442 Financial institutions 778,832 620,311 Corporates 433,488 721,573 Securities loaned 625,398 - Others 158,908 174,206 Equity securities 421,989 383,883 Capital contributions 2,459,646 1,976,474 Beneficiary certificates 5,509,915 3,902,762 Others 181,691 143,334 Sub-total 14,880,479 10,676,985 Loans 782,716 899,228 Derivatives assets 5,798,329 8,206,181 Other financial assets 43,991 43,184 Total 21,544,756 19,860,573 The Group does not have financial assets at fair value through profit or loss designated as upon initial recognition as of December 31, 2023 and 2022. WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 82 - 8. FINANCIAL ASSETS AT FVTOCI (1) Details of financial assets at FVTOCI as of December 31, 2023 and 2022 are as follows (Unit: Korean Won in millions): December 31, 2023 December 31, 2022 Debt securities: Korean treasury and government agencies 5,728,241 5,487,983 Financial institutions 20,885,924 16,870,619 Corporates 3,994,432 4,044,446 Bond denominated in foreign currencies 5,493,295 5,644,684 Securities loaned 592,219 98,026 Sub-total 36,694,111 32,145,758 Equity securities 1,197,384 939,322 Total 37,891,495 33,085,080 (2) Details of equity securities designated as financial assets at FVTOCI as of December 31, 2023 and 2022 are as follows (Unit: Korean Won in millions): Purpose of acquisition December 31, 2023 December 31, 2022 Remarks Investment for strategic business partnership purpose 1,039,203 776,199 Debt-equity swap 158,175 157,216 Others 6 5,907 Insurance for mutual aid association, etc. Total 1,197,384 939,322 (3) Changes in the loss allowance and gross carrying amount of financial assets at FVTOCI are as follows (Unit: Korean Won in millions): 1) Allowance for credit losses For the year ended December 31, 2023 Stage 1 Stage 2 Stage 3 Total Beginning balance (11,805) - - (11,805) Transfer to 12-month expected credit losses - - - - Transfer to lifetime expected credit losses - - - - Transfer to credit-impaired financial assets - - - - Net provision of loss allowance (16,542) - - (16,542) Disposal 1,519 - - 1,519 Others (*) (551) - - (551) Ending balance (27,379) - - (27,379) (*) Others consist of foreign currencies translation, etc. For the year ended December 31, 2022 Stage 1 Stage 2 Stage 3 Total Beginning balance (12,146) - - (12,146) Transfer to 12-month expected credit losses - - - - Transfer to lifetime expected credit losses - - - - Transfer to credit-impaired financial assets - - - - Reversal of loss allowance 827 - - 827 Disposal 714 - - 714 Others (*) (1,200) - - (1,200) Ending balance (11,805) - - (11,805) (*) Others consist of foreign currencies translation, etc. WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 83 - 2) Gross carrying amount For the year ended December 31, 2023 Stage 1 Stage 2 Stage 3 Total Beginning balance 32,145,758 - - 32,145,758 Transfer to 12-month expected credit losses - - - - Transfer to lifetime expected credit losses - - - - Transfer to credit-impaired financial assets - - - - Acquisition 24,350,759 - - 24,350,759 Disposal / Recovery (20,823,293) - - (20823,293) Gain (loss) on valuation 707,739 - - 707,739 Amortization based on effective interest method 166,401 - - 166,401 Others (*) 146,747 - - 146,747 Ending balance 36,694,111 - - 36,694,111 (*) Others consist of foreign currencies translation, etc. For the year ended December 31, 2022 Stage 1 Stage 2 Stage 3 Total Beginning balance 38,126,977 - - 38,126,977 Transfer to 12-month expected credit losses - - - - Transfer to lifetime expected credit losses - - - - Transfer to credit-impaired financial assets - - - - Acquisition 16,108,426 - - 16,108,426 Disposal / Recovery (21,670,160) - - (21,670,160) Gain (loss) on valuation (669,936) - - (669,936) Amortization based on effective interest method 41,813 - - 41,813 Others (*) 208,638 - - 208,638 Ending balance 32,145,758 - - 32,145,758 (*) Others consist of foreign currencies translation, etc. (4) During the years ended December 31, 2023 and 2022, the Group sold its equity securities., designated as financial assets at FVTOCI in accordance with decision of disposal by the creditors, and the fair values at disposal dates were 3,194 million Won and 3,567 million Won, respectively and cumulative gains and losses at disposal dates were 118 million Won in gain and 14,444 million Won in loss, respectively. WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 84 - 9. SECURITIES AT AMORTIZED COST (1) Details of securities at amortized cost as of December 31, 2023 and 2022 are as follows (Unit: Korean Won in millions): December 31, 2023 December 31, 2022 Korean treasury and government agencies 8,143,585 10,083,951 Financial institutions 6,660,465 10,283,631 Corporates 7,235,202 6,237,547 Bond denominated in foreign currencies 1,970,861 1,671,772 Allowance for credit losses (13,941) (8,385) Total 23,996,172 28,268,516 (2) Changes in the loss allowance and gross carrying amount of securities at amortized cost are as follows (Unit: Korean Won in millions): 1) Loss allowance For the year ended December 31, 2023 Stage 1 Stage 2 Stage 3 Total Beginning balance (8,385) - - (8,385) Transfer to 12-month expected credit losses - - - - Transfer to lifetime expected credit losses - - - - Transfer to credit-impaired financial assets - - - - Net provision of loss allowance (5,549) - - (5,549) Others (*) (7) - - (7) Ending balance (13,941) - - (13,941) (*) Changes due to foreign currencies translation, etc. For the year ended December 31, 2022 Stage 1 Stage 2 Stage 3 Total Beginning balance (5,235) - - (5,235) Transfer to 12-month expected credit losses - - - - Transfer to lifetime expected credit losses - - - - Transfer to credit-impaired financial assets - - - - Net provision of loss allowance (3,151) - - (3,151) Others (*) 1 - - 1 Ending balance (8,385) - - (8,385) (*) Changes due to foreign currencies translation, etc. WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 85 - 2) Gross carrying amount For the year ended December 31, 2023 Stage 1 Stage 2 Stage 3 Total Beginning balance 28,276,901 - - 28,276,901 Transfer to 12-month expected credit losses - - - - Transfer to lifetime expected credit losses - - - - Transfer to credit-impaired financial assets - - - - Acquisition 4,244,256 - - 4,244,256 Disposal / Recovery (8,727,124) - - (8,727,124) Amortization based on effective interest method 167,219 - - 167,219 Others (*) 48,861 - - 48,861 Ending balance 24,010,113 - - 24,010,113 (*) Changes due to foreign currencies translation, etc. For the year ended December 31, 2022 Stage 1 Stage 2 Stage 3 Total Beginning balance 17,091,509 - - 17,091,509 Transfer to 12-month expected credit losses - - - - Transfer to lifetime expected credit losses - - - - Transfer to credit-impaired financial assets - - - - Acquisition 16,873,194 - - 16,873,194 Disposal / Recovery (5,871,234) - - (5,871,234) Amortization based on effective interest method 86,212 - - 86,212 Others (*) 97,220 - - 97,220 Ending balance 28,276,901 - - 28,276,901 (*) Changes due to foreign currencies translation, etc. WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 86 - 10. LOANS AND OTHER FINANCIAL ASSETS AT AMORTIZED COST (1) Details of loans and other financial assets at amortized cost as of December 31, 2023 and 2022 are as follows (Unit: Korean Won in millions): December 31, 2023 December 31, 2022 Due from banks 1,950,573 2,994,672 Loans 358,577,179 343,918,560 Other financial assets 12,620,396 8,847,497 Total 373,148,148 355,760,729 (2) Details of due from banks are as follows (Unit: Korean Won in millions): December 31, 2023 December 31, 2022 Due from banks in local currency: Due from The Bank of Korea (“BOK”) - 160,000 Due from depository banks 108,344 170,006 Due from non-depository institutions 136 183 Due from the Korea Exchange 68 2,440 Others 135,390 421,318 Loss allowance (59) (116) Sub-total 243,879 753,831 Due from banks in foreign currencies: Due from banks on demand 221,292 199,671 Due from banks on time 366,117 466,963 Others 1,135,072 1,586,408 Loss allowance (15,787) (12,201) Sub-total 1,706,694 2,240,841 Total 1,950,573 2,994,672 (3) Details of restricted due from banks are as follows (Unit: Korean Won in millions): Counterparty December 31, 2023 Reason of restriction Due from banks in local currency: Due from KSFC KB Securities Co., Ltd. and SI SECURITIES CORPORATION 68 Futures margin Others Korea Federation of Savings Bank and others 129,974 Domestic currency exchange and collateral related to promissory notes and others Sub-total 130,042 Due from banks in foreign currencies: Due from banks on demand National Bank of Cambodia and others 216,147 Reserve deposits and others Due from banks on time National Bank of Cambodia 321 Usage deposits for fund settlement system Others People’s Bank of China and others 1,062,130 Reserve deposits and others Sub-total 1,278,598 Total 1,408,640 WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 87 - Counterparty December 31, 2022 Reason of restriction Due from banks in local currency: Due from BOK The BOK 160,000 Reserve deposits under BOK Act Due from KSFC KB Securities Co., Ltd. 2,419 Customer deposits return reserve Others Korea Federation of Savings Banks and others 223,705 Korean Won CCP margin and others Sub-total 386,124 Due from banks in foreign currencies: Due from banks on demand The BOK and others 193,507 Reserve deposits under BOK Act and others Foreign currency deposits on time National Bank Cambodia 253 Reserve deposits and others Others Korea Investment & Securities and others 1,581,298 Overseas futures and options trade deposits and others Sub-total 1,775,058 Total 2,161,182 (4) Changes in the loss allowance and gross carrying amount of due from banks are as follows (Unit: Korean Won in millions): 1) Allowance for credit losses For the year ended December 31, 2023 Stage 1 Stage 2 Stage 3 Total Beginning balance (12,317) - - (12,317) Transfer to 12-month expected credit losses - - - - Transfer to lifetime expected credit losses - - - - Transfer to credit-impaired financial assets - - - - Provision for allowance for credit loss (5,254) - - (5,254) Others (*) 1,725 - - 1,725 Ending balance (15,846) - - (15,846) (*) Changes due to foreign currencies translation, etc. For the year ended December 31, 2022 Stage 1 Stage 2 Stage 3 Total Beginning balance (6,034) - - (6,034) Transfer to 12-month expected credit losses - - - - Transfer to lifetime expected credit losses - - - - Transfer to credit-impaired financial assets - - - - Provision for allowance for credit loss (7,702) - - (7,702) Others (*) 1,419 - - 1,419 Ending balance (12,317) - - (12,317) (*) Changes due to foreign currencies translation, etc. WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 88 - 2) Gross carrying amount For the year ended December 31, 2023 Stage 1 Stage 2 Stage 3 Total Beginning balance 3,006,989 - - 3,006,989 Transfer to 12-month expected credit losses - - - - Transfer to lifetime expected credit losses - - - - Transfer to credit-impaired financial assets - - - - Net decrease (1,154,265) - - (1,154,265) Changes due to business combinations 113,000 - - 113,000 Others (*) 695 - - 695 Ending balance 1,966,419 - - 1,966,419 (*) Changes due to foreign currencies translation, etc. For the year ended December 31, 2022 Stage 1 Stage 2 Stage 3 Total Beginning balance 2,872,918 - - 2,872,918 Transfer to 12-month expected credit losses - - - - Transfer to lifetime expected credit losses - - - - Transfer to credit-impaired financial assets - - - - Net increase 166,693 - - 166,693 Others (*) (32,622) - - (32,622) Ending balance 3,006,989 - - 3,006,989 (*) Changes due to foreign currencies translation, etc. (5) Details of loans are as follows (Unit: Korean Won in millions): December 31, 2023 December 31, 2022 Loans in local currency 298,157,823 282,686,620 Loans in foreign currencies 28,585,389 26,988,360 Domestic banker’s usance 2,726,633 2,877,079 Credit card accounts 12,531,620 10,370,362 Bills bought in foreign currencies 4,215,956 3,650,792 Bills bought in local currency 496,148 533,879 Factoring receivables 8,712 25,469 Advances for customers on guarantees 9,996 25,698 Private placement bonds 688,437 485,519 Securitized loans 3,203,135 2,990,937 Call loans 2,719,546 3,626,226 Bonds purchased under resale agreements 3,356,392 6,849,038 Financial lease receivables 1,362,279 1,467,858 Installment financial bond 2,635,720 2,832,972 Others 119 140 Loan origination costs and fees 865,694 852,002 Discounted present value (11,360) (10,238) Allowance for credit losses (2,975,060) (2,334,153) Total 358,577,179 343,918,560 WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 89 - (6) Changes in the loss allowance of loans are as follows (Unit: Korean Won in millions): For the year ended December 31, 2023 Consumers Corporates Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3 Credit impairment model Beginning balance (147,876) (128,089) (241,942) (453,621) (818,234) (241,465) (27) Transfer to 12-month expected credit losses (25,553) 22,750 2,803 (190,665) 190,047 618 - Transfer to lifetime expected credit losses 10,881 (12,892) 2,011 28,452 (36,229) 7,777 - Transfer to credit-impaired financial assets 7,085 24,577 (31,662) 17,959 33,272 (51,231) - Net provision of allowance for credit losses (41,029) (41,105) (340,607) (361,735) (153,392) (515,711) (1,011) Recovery - - (65,639) - - (44,043) - Charge-off - - 301,995 - - 298,665 - Disposal 18 419 114,643 266 512 172,519 949 Interest income from impaired loans - - 15,553 - - 19,341 - Others (371) 338 22,000 11,656 21,380 (10,173) - Ending balance (196,845) (134,002) (220,845) (947,688) (762,644) (363,703) (89) For the year ended December 31, 2023 Credit card accounts Total Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3 Credit impairment model Beginning balance (71,139) (127,814) (103,946) (672,636) (1,074,137) (587,353) (27) Transfer to 12-month expected credit losses (30,312) 30,198 114 (246,530) 242,995 3,535 - Transfer to lifetime expected credit losses 6,894 (7,420) 526 46,227 (56,541) 10,314 - Transfer to credit-impaired financial assets 748 2,381 (3,129) 25,792 60,230 (86,022) - Net provision of allowance for credit losses (3,864) (15,457) (338,618) (406,628) (209,954) (1,194,936) (1,011) Recovery - - (33,710) - - (143,392) - Charge-off - - 306,005 - - 906,665 - Disposal - - 39,360 284 931 326,522 949 Interest income from impaired loans - - - - - 34,894 - Others (61) - - 11,224 21,718 11,827 - Ending balance (97,734) (118,112) (133,398) (1,242,267) (1,014,758) (717,946) (89) WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 90 - For the year ended December 31, 2022 Consumers Corporates Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3 Credit impairment model Beginning balance (136,520) (97,604) (206,617) (362,766) (576,740) (251,233) - Transfer to 12-month expected credit losses (21,684) 21,210 474 (74,402) 68,546 5,856 - Transfer to lifetime expected credit losses 10,211 (11,568) 1,357 18,678 (21,502) 2,824 - Transfer to credit-impaired financial assets 3,960 8,975 (12,935) 2,217 12,769 (14,986) - Net provision of allowance for credit losses (734) (49,398) (156,286) (22,646) (303,198) (107,038) (27) Recovery - - (70,077) - - (55,743) - Charge-off - - 161,850 - - 140,744 - Disposal - 62 21,862 280 128 37,722 - Interest income from impaired loans - - 11,805 - - 9,576 - Changes due to business combinations (4,350) (495) (948) (479) (84) (97) - Others 1,241 729 7,573 (14,503) 1,847 (9,090) - Ending balance (147,876) (128,089) (241,942) (453,621) (818,234) (241,465) (27) For the year ended December 31, 2022 Credit card accounts Total Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3 Credit impairment model Beginning balance (68,814) (115,489) (70,927) (568,100) (789,833) (528,777) - Transfer to 12-month expected credit losses (31,360) 31,284 76 (127,446) 121,040 6,406 - Transfer to lifetime expected credit losses 7,576 (7,694) 118 36,465 (40,764) 4,299 - Transfer to credit-impaired financial assets 642 2,190 (2,832) 6,819 23,934 (30,753) - Net provision of allowance for credit losses 20,820 (38,105) (204,569) (2,560) (390,701) (467,893) (27) Recovery - - (53,988) - - (179,808) - Charge-off - - 220,280 - - 522,874 - Disposal - - 7,896 280 190 67,480 - Interest income from impaired loans - - - - - 21,381 - Changes due to business combinations - - - (4,829) (579) (1,045) - Others (3) - - (13,265) 2,576 (1,517) - Ending balance (71,139) (127,814) (103,946) (672,636) (1,074,137) (587,353) (27) WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 91 - (7) Changes in the gross carrying amount of loans are as follows (Unit: Korean Won in millions): For the year ended December 31, 2023 Consumers Corporates Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3 Credit impairment model Beginning balance 131,328,377 14,020,582 564,057 179,552,435 9,486,297 625,998 313,717 Transfer to 12-month expected credit losses 4,038,074 (4,024,039) (14,035) 2,214,045 (2,209,035) (5,010) - Transfer to lifetime expected credit losses (6,406,254) 6,422,979 (16,725) (4,944,087) 4,971,596 (27,509) - Transfer to credit-impaired financial assets (263,965) (173,536) 437,501 (582,131) (242,382) 824,513 - Charge-off - - (301,995) - - (298,665) - Disposal (63) (491) (218,965) (18,149) (719) (404,876) (152,024) Net increase(decrease) 4,115,668 (1,531,099) 192,248 12,389,915 (1,384,370) 142,393 606,794 Changes due to business combinations 1,144 - - - - - - Ending balance 132,812,981 14,714,396 642,086 188,612,028 10,621,387 856,844 768,487 For the year ended December 31, 2023 Credit card accounts Total Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3 Credit impairment model Beginning balance 9,115,460 1,066,380 179,410 319,996,272 24,573,259 1,369,465 313,717 Transfer to 12-month expected credit losses 343,929 (343,765) (164) 6,596,048 (6,576,839) (19,209) - Transfer to lifetime expected credit losses (411,467) 412,222 (755) (11,761,808) 11,806,797 (44,989) - Transfer to credit-impaired financial assets (40,236) (20,039) 60,275 (886,332) (435,957) 1,322,289 - Charge-off - - (306,005) - - (906,665) - Disposal - - (73,107) (18,212) (1,210) (696,948) (152,024) Net increase(decrease) 2,279,382 (131,187) 393,697 18,784,965 (3,046,656) 728,338 606,794 Changes due to business combinations - - - 1,144 - - - Ending balance 11,287,068 983,611 253,351 332,712,077 26,319,394 1,752,281 768,487 WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 92 - For the year ended December 31, 2022 Consumers Corporates Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3 Credit impairment model Beginning balance 135,139,685 13,500,783 499,969 170,795,255 8,458,279 541,732 - Transfer to 12-month expected credit losses 4,651,157 (4,637,460) (13,697) 1,784,684 (1,768,655) (16,029) - Transfer to lifetime expected credit losses (6,284,951) 6,303,526 (18,575) (3,773,713) 3,792,473 (18,760) - Transfer to credit-impaired financial assets (157,808) (102,097) 259,905 (242,421) (123,225) 365,646 - Charge-off - - (161,850) - - (140,744) - Disposal - (259) (57,052) (48,472) (391) (134,732) - Net increase(decrease) (2,077,449) (1,046,885) 47,727 11,005,551 (873,200) 28,198 313,717 Changes due to business combinations 57,743 2,974 7,630 31,551 1,016 687 - Ending balance 131,328,377 14,020,582 564,057 179,552,435 9,486,297 625,998 313,717 For the year ended December 31, 2022 Credit card accounts Total Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3 Credit impairment model Beginning balance 8,239,303 1,395,139 116,075 314,174,243 23,354,201 1,157,776 - Transfer to 12-month expected credit losses 542,021 (541,913) (108) 6,977,862 (6,948,028) (29,834) - Transfer to lifetime expected credit losses (403,398) 403,598 (200) (10,462,062) 10,499,597 (37,535) - Transfer to credit-impaired financial assets (31,780) (21,244) 53,024 (432,009) (246,566) 678,575 - Charge-off - - (220,280) - - (522,874) - Disposal - - (17,082) (48,472) (650) (208,866) - Net increase(decrease) 769,314 (169,200) 247,981 9,697,416 (2,089,285) 323,906 313,717 Changes due to business combinations - - - 89,294 3,990 8,317 - Ending balance 9,115,460 1,066,380 179,410 319,996,272 24,573,259 1,369,465 313,717 WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 93 - (8) Details of other financial assets are as follows (Unit: Korean Won in millions): December 31, 2023 December 31, 2022 Cash Management Account asset (CMA asset) 91,000 157,000 Receivables 9,061,936 5,438,469 Accrued income 1,972,330 1,667,397 Telex and telephone subscription rights and refundable deposits 793,510 801,536 Domestic exchange settlement debit 446,570 577,919 Other assets (*) 411,330 344,356 Allowance for credit losses (156,280) (139,180) Total 12,620,396 8,847,497 (*) The amount included in other assets related employee incidents in prior fiscal year was 63,354 million Won, which was completely lost. (9) Changes in the allowances for credit losses on other financial assets are as follows (Unit: Korean Won in millions): For the year ended December 31, 2023 Stage 1 Stage 2 Stage 3 Total Beginning balance (4,178) (9,133) (125,869) (139,180) Transfer to 12-month expected credit losses (388) 285 103 - Transfer to lifetime expected credit losses 223 (246) 23 - Transfer to credit-impaired financial assets 50 266 (316) - Provision of loss allowance (3,141) (8,235) (10,829) (22,205) Charge-off - - 4,341 4,341 Disposal - - 2,597 2,597 Others (1,585) 1 (249) (1,833) Ending balance (9,019) (17,062) (130,199) (156,280) For the year ended December 31, 2022 Stage 1 Stage 2 Stage 3 Total Beginning balance (3,675) (5,580) (57,526) (66,781) Transfer to 12-month expected credit losses (261) 246 15 - Transfer to lifetime expected credit losses 209 (225) 16 - Transfer to credit-impaired financial assets 981 1,134 (2,115) - Provision of loss allowance (1,749) (4,707) (6,329) (12,785) Charge-off - - 2,223 2,223 Disposal - - 751 751 Others 317 (1) (62,904) (62,588) Ending balance (4,178) (9,133) (125,869) (139,180) WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 94 - (10) Changes in the gross carrying amount of other financial assets are as follows (Unit: Korean Won in millions): For the year ended December 31, 2023 Stage 1 Stage 2 Stage 3 Total Beginning balance 8,886,721 21,454 78,502 8,986,677 Transfer to 12-month expected credit losses 14,252 (14,143) (109) - Transfer to lifetime expected credit losses (30,528) 30,559 (31) - Transfer to credit-impaired financial assets (7,299) (1,498) 8,797 - Charge-off - - (4,341) (4,341) Disposal - - (3,318) (3,318) Net increase (decrease) 3,634,239 75,526 74,653 3,784,418 Changes due to business combinations 13,240 - - 13,240 Ending balance 12,510,625 111,898 154,153 12,776,676 For the year ended December 31, 2022 Stage 1 Stage 2 Stage 3 Total Beginning balance 9,004,539 106,597 174,868 9,286,004 Transfer to 12-month expected credit losses 9,765 (9,749) (16) - Transfer to lifetime expected credit losses (38,248) 38,265 (17) - Transfer to credit-impaired financial assets (1,484) (2,824) 4,308 - Charge-off - - 24 24 Disposal (5) - (917) (922) Net increase (decrease) (88,214) (110,835) (99,748) (298,797) Changes due to business combinations 368 - - 368 Ending balance 8,886,721 21,454 78,502 8,986,677 WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 95 - 11. FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES (1) The fair value hierarchy The fair value hierarchy for financial instruments is determined by the amount of observable market data. The specific financial instruments characteristics and market condition such as the existence of the transactions among market participants and transparency are reflected to the market observable inputs. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities. The Group maximizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value of its financial assets and financial liabilities. Fair value is measured based on the perspective of a market participant. As such, even when market assumptions are not readily available, the Group’s own assumptions reflect those that market participants would use for measuring the assets or liabilities at the measurement date. The fair value measurement is described in the one of the following three levels used to classify fair value measurements: • Level 1 - fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities. The types of financial assets or liabilities generally included in Level 1 are publicly traded equity securities, derivatives, and debt securities issued by governmental bodies. • Level 2 - fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. prices) or indirectly (i.e. derived from prices). The types of financial assets or liabilities generally included in Level 2 are debt securities not traded in active markets and derivatives traded in OTC but not required significant judgment. • Level 3 - fair value measurements are those derived from valuation technique that include inputs for the assets or liabilities that are not based on observable market data (unobservable inputs). The types of financial assets or liabilities generally included in Level 3 are non-public securities and derivatives and debt securities of which valuation techniques require significant judgments and subjectivity. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The Group’s assessment of the significance of a particular input to a fair value measurement in its entirety requires judgment and consideration of inherent factors of the asset or liability. WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 96 - (2) Fair value hierarchy of financial assets and liabilities measured at fair value are as follows (Unit: Korean Won in millions): December 31, 2023 Level 1 (*) Level 2 (*) Level 3 Total Financial assets: Financial assets at FVTPL Deposits 39,241 - - 39,241 Debt securities 4,414,956 1,888,052 4,230 6,307,238 Equity securities 68,691 19 353,279 421,989 Capital contributions - - 2,459,646 2,459,646 Beneficiary certificates 169,012 3,634,938 1,705,965 5,509,915 Loans - 726,714 56,002 782,716 Derivative assets 113 5,669,078 129,138 5,798,329 Other financial assets in foreign currency - - 42,408 42,408 Others - - 183,274 183,274 Sub-total 4,692,013 11,918,801 4,933,942 21,544,756 Financial assets at FVTOCI Debt securities 12,392,117 24,301,994 - 36,694,111 Equity securities 649,220 - 548,164 1,197,384 Sub-total 13,041,337 24,301,994 548,164 37,891,495 Derivative assets (designated for hedging) - 26,708 - 26,708 Total 17,733,350 36,247,503 5,482,106 59,462,959 Financial liabilities: Financial liabilities at FVTPL Deposits due to customers 39,524 - - 39,524 Derivative liabilities 8,303 5,932,727 1,994 5,943,024 Securities sold 155,765 - - 155,765 Sub-total 203,592 5,932,727 1,994 6,138,313 Derivative liabilities (designated for hedging) - 153,007 - 153,007 Total 203,592 6,085,734 1,994 6,291,320 (*) There were no transfers between Level 1 and Level 2 of financial assets and liabilities measured at fair value. The Group recognizes transfers among levels at the end of reporting period in which events have occurred or conditions have changed. WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 97 - December 31, 2022 Level 1 (*) Level 2 (*) Level 3 Total Financial assets: Financial assets at FVTPL Deposits 34,995 - - 34,995 Debt securities 2,580,563 1,654,591 1,078 4,236,232 Equity securities 76,007 25 307,851 383,883 Capital contributions - - 1,976,474 1,976,474 Beneficiary certificates 45,394 2,398,592 1,458,776 3,902,762 Loans - 794,723 104,505 899,228 Derivative assets 69,316 8,042,895 93,970 8,206,181 Other financial assets in foreign currency - - 41,679 41,679 Others 34,299 - 144,840 179,139 Sub-total 2,840,574 12,890,826 4,129,173 19,860,573 Financial assets at FVTOCI Debt securities 9,895,456 22,250,302 - 32,145,758 Equity securities 382,257 - 557,065 939,322 Sub-total 10,277,713 22,250,302 557,065 33,085,080 Derivative assets (designated for hedging) - 37,786 - 37,786 Total 13,118,287 35,178,914 4,686,238 52,983,439 Financial liabilities: Financial liabilities at FVTPL Deposits due to customers 35,161 - - 35,161 Derivative liabilities 11,700 8,883,976 9,449 8,905,125 Securities sold 12,113 - - 12,113 Sub-total 58,974 8,883,976 9,449 8,952,399 Derivative liabilities (designated for hedging) - 202,911 - 202,911 Total 58,974 9,086,887 9,449 9,155,310 (*) Among financial assets and financial liabilities measured at fair value, the amount transferred from Level 2 to Level 1 is 2,835,187 million Won. The Group recognizes transfers among levels at the end of reporting period in which events have occurred or conditions have changed. WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 98 - Financial assets and liabilities at FVTPL, financial liabilities at FVTPL designated as upon initial recognition, financial assets at FVTOCI, and derivative assets and liabilities are recognized at fair value. Fair value is the amount that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date. Financial instruments are measured at fair value using a quoted market price in active markets. If there is no active market for a financial instrument, the Group determines the fair value using valuation methods. Valuation methods and input variables for each type of financial instruments are as follows: 1) Valuation methods and input variables for each type of financial instrument classified into level 2 as of December 31, 2023 and 2022 are as follows: Valuation methods Input variables Debt securities Fair value is measured by discounting the future cash flows of debt securities applying the risk-free market rate with credit spread and LSMC and Hull-White model. Risk-free market rate, credit spread, discount rate originated from credit grade, volatility of stock and volatility of interest rate Equity securities and beneficiary certificates The beneficiary certificates are measured at net asset value method, DCF model(Discounted Cash Flow Model), Binomial Tree model and T-F model. Values of underlying assets such as bond, discount rate, volatility of stock, terminal growth rate etc. Derivatives Fair value is measured by models such as option model (Closed form). Discount rate, volatility, exchange rate, stock prices, fair value originated from forward price etc. Loans The future cash flows of debt instruments are measured at a discount by applying the market interest rate applied to entities with similar creditworthiness to the debtor. Risk-free market rate and credit spread 2) Valuation methods and input variables for each type of financial instrument classified into level 3 as of December 31, 2023 and 2022 are as follows: Valuation methods Input variables Loans Fair value is measured by using the DCF model (Discounted Cash Flow Model), which is a valuation technique commonly used in the market taking into account the price and variability of the underlying asset, T-F model, LSMC and Hull-White etc. Values of underlying assets, volatility, discount rate, volatility of stock, volatility of interest rate Debt securities Fair value is measured by models such as LSMC(Least- Squares Monte Carlo), Hull-White model. Discount rate originated from credit grade, volatility of stocks , volatility of interest rate etc. Equity securities, capital contributions and Beneficiary certificates Among DCF (Discounted Cash Flow) Model, FCFE (Free Cash Flow to Equity) Model, Comparable Company Analysis, Dividend Discount Model, Risk- adjusted Rate of Return Method, Net Asset Value Method, LSMC, Hull-White and Precedent Transactions model more than one method is used given the characteristic of the subject of fair value measurement. Risk-free market rate, market risk premium, corporate Beta, stock prices, volatility of underlying asset, discount rate originated from credit grade, volatility of interest rate, volatility of real estate value, terminal growth rate, PBR, PSR etc. Derivatives Fair value is measured by models such as option model. Correlation, etc. Others The fair value of the underlying asset, after calculating the fair value using the DCF model, etc., considering the price and volatility of the calculated underlying asset, is calculated using the binomial tree, which is commonly used valuation techniques in the market. Stock price, volatility of underlying assets, etc. WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 99 - Valuation methods of financial assets and liabilities measured at fair value and classified into Level 3 and significant but unobservable inputs are as follows: Fair value measurement technique Type Significant unobservable inputs Range(%) Impact of changes in significant unobservable inputs on fair value measurement Loans DCF model and others Discount rate 4.05%~6.58% Fair value increases as discount rate decreases. LSMC(Hull-White) Volatility of stock 0.19%~0.24% Fair value increases as volatility of stock increases. Volatility of interest rate 0.47%~0.91% Fair value increases as volatility of interest rate increases. Discount rate 13.78%~21.92% Fair value increases as discount rate decreases. Derivative assets Option valuation model and others Equity related Correlation coefficient 0.32~0.68 Variation of fair value increases as correlation coefficient increases. Derivative liabilities Option valuation model and others Equity related Correlation coefficient 0.32~0.68 Variation of fair value increases as correlation coefficient increases. Equity securities, capital contributions, and beneficiary certificates Binomial Tree Discount rate 3.58% Fair value increases as discount rate decreases. Stock prices, Volatility of underlying asset, Volatility of stocks 27.34%~76.22% Variation of fair value increases as volatility of underlying asset and stock price increases. Risk-adjusted discount rate method (Tsiveriotis- Fernandes) Discount rate 6.98% Fair value increases as discount rate decreases. Volatility of stock 34.6% Variation of fair value increases as volatility of stock increases. DCF model and others Discount rate 5.08%~19.90% Fair value increases as discount rate decreases. Terminal growth rate 0.00%, 1.00% Fair value increases as terminal growth rate increases. Liquidation value -1.00%~1.00% Fair value increases as liquidation value increases. LSMC(Hull-White) Discount rate 5.06%~6.86% Fair value increases as discount rate decreases. Others Binomial Tree Stock prices, Volatility of underlying asset 15.48%~76.22% Variation of fair value increases as volatility of underlying asset and stock price increases. Discount rate 10.42% Fair value increases as discount rate decreases. Growth rate 0.00% Fair value increases as terminal growth rate increases Fair value of financial assets and liabilities classified into Level 3 is measured by the Group using its own valuation methods or using external specialists. Unobservable inputs used in the fair value measurements are produced by the internal system of the Group and the appropriateness of inputs is reviewed regularly. WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 100 - (3) Changes in financial assets and liabilities measured at fair value classified into Level 3 are as follows (Unit: Korean Won in millions): For the year ended December 31, 2023 Beginning balance Business combination Net income (loss) (*1) Other comprehensive income Purchases/ issuances Disposals / settlements Transfer to or out of Level 3 (*2) Ending balance Financial assets: Financial assets at FVTPL Debt securities 1,078 - 152 - 4,000 (1,000) - 4,230 Equity securities 307,851 10,628 10,632 - 62,638 (32,630) (5,840) 353,279 Capital contributions 1,976,474 10,977 65,437 - 655,921 (249,163) - 2,459,646 Beneficiary certificates 1,458,776 - 3,534 - 280,435 (36,780) - 1,705,965 Loans 104,505 - 483 - 577,296 (626,282) - 56,002 Derivative assets 93,970 - 41,620 - 2,273 (8,725) - 129,138 Other foreign currency financial assets 41,679 - 729 - - - - 42,408 Others 144,840 - 9,015 - 32,214 (2,795) - 183,274 Sub-total 4,129,173 21,605 131,602 - 1,614,777 (957,375) (5,840) 4,933,942 Financial assets at FVTOCI Equity securities 557,065 - - (6,564) 343 (2,657) (23) 548,164 Loans - - - - 139,567 (139,567) - - Sub-total 557,065 - - (6,564) 139,910 (142,224) (23) 548,164 Total 4,686,238 21,605 131,602 (6,564) 1,754,687 (1,099,599) (5,863) 5,482,106 Financial liabilities: Financial liabilities at FVTPL Derivative liabilities 9,449 - 1,994 - - (9,449) - 1,994 Total 9,449 - 1,994 - - (9,449) - 1,994 (*1) For financial liabilities, positive numbers represent losses that increase balance and negative numbers represent gains that decrease balance. The gain amounting to 171,095 million Won for the year ended December 31, 2023, which is from financial assets and liabilities that the Group holds as at the end of the year. (*2) The Group recognizes transfers among levels at the end of reporting period in which events have occurred or conditions have changed. WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 101 - For the year ended December 31, 2022 Beginning balance Net income (loss) (*1) Other comprehensive income Purchases/ issuances Disposals / settlements Transfer to or out of Level 3 (*2) Ending balance Financial assets: Financial assets at FVTPL Debt securities 2,117 (40) - - (999) - 1,078 Equity securities 303,985 697 - 20,175 (16,974) (32) 307,851 Capital contributions 1,287,723 103,376 - 703,160 (117,785) - 1,976,474 Beneficiary certificates 1,104,074 (2,922) - 98,420 259,204 - 1,458,776 Loans 213,635 17,544 - 802,092 (928,766) - 104,505 Derivative assets 29,348 64,359 - 582 (319) - 93,970 Other foreign currency financial assets - - - 41,679 - - 41,679 Others 96,191 16,744 - 40,836 (8,931) - 144,840 Sub-total 3,037,073 199,758 - 1,706,944 (814,570) (32) 4,129,173 Financial assets at FVTOCI Equity securities 581,455 - 2,084 2,357 (28,831) - 557,065 Total 3,618,528 199,758 2,084 1,709,301 (843,401) (32) 4,686,238 Financial liabilities: Financial liabilities at FVTPL Derivative liabilities 4,641 8,058 - (351) (2,899) - 9,449 Total 4,641 8,058 - (351) (2,899) - 9,449 (*1) For financial liabilities, positive numbers represent losses that increase balance and negative numbers represent gains that decrease balance. The gain amounting to 2,770 million Won for the year ended December 31, 2022, which is from financial assets and liabilities that the Group holds as at the end of the year. (*2) The Group recognizes transfers among levels at the end of reporting period in which events have occurred or conditions have changed. WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 102 - (4) Sensitivity analysis results on reasonable fluctuation of the significant unobservable input variables for the fair value of Level 3 financial instruments are as follows. The sensitivity analysis of the financial instruments has been performed by classifying with favorable and unfavorable changes based on how changes in unobservable assumptions would have effects on the fluctuations of financial instruments’ value. When the fair value of a financial instrument is affected by more than one unobservable assumption, the below table reflects the most favorable or the most unfavorable changes which resulted from varying the assumptions individually. The sensitivity analysis was performed for two types of level 3 financial instruments: (1) interest rate related derivatives, currency related derivatives, equity related derivatives, equity-linked securities beneficiary certificates and loans of which fair value changes are recognized as net income; (2) equity securities of which fair value changes are recognized as other comprehensive income. Meanwhile, among the financial instruments that are classified as Level 3 amounting to 5,484,098 million Won and 4,695,688 million Won as of December 31, 2023 and 2022, respectively, equity instruments of 4,704,747 million Won and 3,196,703 million Won whose carrying amount are considered to represent the reasonable approximation of fair value are excluded from the sensitivity analysis. The sensitivity on fluctuation of input variables by financial instruments as of December 31, 2023 and 2022 is as follows (Unit: Korean Won in millions): December 31, 2023 Net income (loss) Other comprehensive income (loss) Favorable Unfavorable Favorable Unfavorable Financial assets: Financial assets at FVTPL Derivative assets (*1) 88 (95) - - Loans (*2) 202 (199) - - Debt securities(*3) 21 (22) - - Equity securities (*2) (*3) (*4) 11,562 (8,953) - - Beneficiary certificates (*4) 722 (722) - - Others (*2) 4,098 (3,921) - - Financial assets at FVTOCI Equity securities (*3) (*4) - - 28,020 (22,302) Total 16,693 (13,912) 28,020 (22,302) Financial liabilities: Financial liabilities at FVTPL Derivative liabilities (*1) 10 (7) - - Total 10 (7) - - (*1) Fair value changes of equity related derivatives assets and liabilities and equity-linked securities are calculated by increasing or decreasing correlation, which are major unobservable variables, by 10%, respectively. (*2) Fair value changes of equity securities are calculated by increasing or decreasing stock prices (-10%~10%) and volatility (-10%p~10%p). The stock prices and volatility are major unobservable variables. (*3) Fair value changes of equity securities are calculated by increasing or decreasing terminal growth rate (- 0.5%p~1%p) and discount rate (-1%p~1%p) or liquidation value (-1%p~1%p). The growth rate, discount rate, and liquidation value are major unobservable variables. (*4) Even if the sensitivity analysis of the capital contributions and beneficiary certificates is not possible in practice, fair value changes of beneficiary certificates and other securities whose major unobservable variables are composed of the real estate are calculated by increasing or decreasing price fluctuation rate of real estate which is underlying assets and discount rate by 1%. WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 103 - December 31, 2022 Net income (loss) Other comprehensive income (loss) Favorable Unfavorable Favorable Unfavorable Financial assets: Financial assets at FVTPL Derivative assets (*1) 2,453 (1,993) - - Loans (*2) 203 (200) - - Debt securities 1 - - - Equity securities (*2) (*3) (*4) 10,146 (8,079) - - Beneficiary certificates (*4) 737 (737) - - Others (*2) 2,860 (2,790) - - Financial assets at FVTOCI - - - - Equity securities (*3) (*4) - - 24,370 (17,579) Total 16,400 (13,799) 24,370 (17,579) Financial liabilities: Financial liabilities at FVTPL Derivative liabilities (*1) 41 (39) - - Total 41 (39) - - (*1) Fair value changes of equity related derivatives assets and liabilities and equity-linked securities are calculated by increasing or decreasing historical volatility of the stock price and correlation, which are major unobservable variables, by 10%, respectively. In the case of interest rate related derivative assets and liabilities, fair value changes are calculated by increasing or decreasing the volatility of interest rate, which are major unobservable variables, by 10%. (*2) Fair value changes of equity securities are calculated by increasing or decreasing stock prices (-10%~10%) and volatility (-10~10%). The stock prices and volatility are major unobservable variables. (*3) Fair value changes of equity securities are calculated by increasing or decreasing terminal growth rate (- 0.5%~0.5%) and discount rate (-1~1%) or liquidation value (-1~1%). The growth rate, discount rate, and liquidation value are major unobservable variables. (*4) Even if the sensitivity analysis of the capital contributions and beneficiary certificates is not possible in practice, fair value changes of beneficiary certificates and other securities whose major unobservable variables are composed of the real estate are calculated by increasing or decreasing price fluctuation rate of real estate which is underlying assets and discount rate by 1%. WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 104 - (5) Fair value and carrying amount of financial assets and liabilities that are recorded at amortized cost are as follows (Unit: Korean Won in millions): December 31, 2023 Fair value Carrying amount Level 1 Level 2 Level 3 Total Financial assets: Securities at amortized cost 2,361,627 21,303,099 - 23,664,726 23,996,172 Loans and other financial assets at amortized cost - 9,905,518 364,211,207 374,116,725 373,148,148 Financial liabilities: Deposits due to customers - 360,186,521 - 360,186,521 357,784,297 Borrowings - 31,065,237 87,342 31,152,579 30,986,746 Debentures - 40,504,019 - 40,504,019 41,239,245 Other financial liabilities (*) - 24,584,447 609,620 25,194,067 25,780,550 (*) Lease liabilities are excluded as of December 31, 2023. December 31, 2022 Fair value Carrying amount Level 1 Level 2 Level 3 Total Financial assets: Securities at amortized cost 2,652,449 24,623,369 - 27,275,818 28,268,516 Loans and other financial assets at amortized cost - 6,238,724 345,952,544 352,191,268 355,760,730 Financial liabilities: Deposits due to customers - 343,931,576 - 343,931,576 342,105,209 Borrowings - 26,063,256 2,135,047 28,198,303 28,429,603 Debentures - 42,918,411 - 42,918,411 44,198,486 Other financial liabilities (*) - 21,244,664 536,209 21,780,873 22,492,705 (*) Lease liabilities are excluded as of December 31, 2022. The fair values of financial instruments are measured using quoted market price in active markets. In case there is no active market for financial instruments, the Group determines the fair value by using valuation methods. Valuation methods and input variables for financial assets and liabilities that are measured at amortized cost are given as follows: Valuation methods Input variables Securities at amortized cost The fair value is measured by discounting the projected cash flows of debt securities by applying risk-free market rate with credit spread. Risk-free market rate and credit spread Loans and other financial assets at amortized cost The fair value is measured by discounting the projected cash flows of loan products by applying the market discount rate that has been applied to a proxy company that has similar credit rating to the debtor. Risk-free market rate, credit spread and prepayment rate Deposits due to customers, borrowings, debentures and other financial liabilities The fair value is measured by discounting the projected cash flows of debt products by applying the market discount rate that is reflecting credit rating of the Group. Risk-free market rate and credit spread WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 105 - (6) Financial instruments by category Carrying amounts of financial assets and liabilities by each category are as follows (Unit: Korean Won in millions): December 31, 2023 Financial assets Financial assets at FVTPL Financial assets at FVTOCI Financial assets at amortized cost Derivatives assets (designated for hedging) Total Deposits 39,241 - 1,950,573 - 1,989,814 Securities 14,880,479 37,891,495 23,996,172 - 76,768,146 Loans 782,716 - 358,577,179 - 359,359,895 Derivative assets 5,798,329 - - 26,708 5,825,037 Other financial assets 43,991 - 12,620,396 - 12,664,387 Total 21,544,756 37,891,495 397,144,320 26,708 456,607,279 December 31, 2023 Financial liabilities Financial liabilities at FVTPL Financial liabilities at amortized cost Derivatives liabilities (designated for hedging) Total Deposits due to customers 39,524 357,784,297 - 357,823,821 Borrowings 155,765 30,986,746 - 31,142,511 Debentures - 41,239,245 - 41,239,245 Derivative liabilities 5,943,024 - 153,007 6,096,031 Other financial liabilities (*) - 25,780,550 - 25,780,550 Total 6,138,313 455,790,838 153,007 462,082,158 (*) Lease liabilities are excluded as of December 31, 2023. December 31, 2022 Financial assets Financial assets at FVTPL Financial assets at FVTOCI Financial assets at amortized cost Derivatives assets (designated for hedging) Total Deposits 34,995 - 2,994,672 - 3,029,667 Securities 10,676,985 33,085,080 28,268,516 - 72,030,581 Loans 899,228 - 343,918,560 - 344,817,788 Derivative assets 8,206,181 - - 37,786 8,243,967 Other financial assets 43,184 - 8,847,497 - 8,890,681 Total 19,860,573 33,085,080 384,029,245 37,786 437,012,684 December 31, 2022 Financial liabilities Financial liabilities at FVTPL Financial liabilities at amortized cost Derivatives liabilities (designated for hedging) Total Deposits due to customers 35,161 342,105,209 - 342,140,370 Borrowings 12,113 28,429,603 - 28,441,716 Debentures - 44,198,486 - 44,198,486 Derivative liabilities 8,905,125 - 202,911 9,108,036 Other financial liabilities (*) - 22,492,707 - 22,492,707 Total 8,952,399 437,226,005 202,911 446,381,315 (*) Lease liabilities are excluded as of December 31, 2022. WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 106 - (7) Income or expense from financial instruments by category Income or expense from financial assets and liabilities by each category during the years ended December 31, 2023 and 2022 are as follows (Unit: Korean Won in millions): For the year ended December 31, 2023 Interest income (expense) Fees and commissions income (expense) Reversal (provision) of credit loss Gain or loss on transactions and valuation Dividends, etc. Total Financial assets at FVTPL 192,094 514 - 488,486 222,357 903,451 Financial assets at FVTOCI 999,407 1,621 (16,542) (37,641) 17,936 964,781 Securities at amortized cost 782,513 - (5,549) - - 776,964 Loans and other financial assets at amortized cost 18,667,540 578,387 (1,839,987) 203,942 - 17,609,882 Financial liabilities at amortized cost (11,887,127) 1,247 - - - (11,885,880) Net derivatives (designated for hedging) - - - 15,678 - 15,678 Total 8,754,427 581,769 (1,862,078) 670,465 240,293 8,384,876 For the year ended December 31, 2022 Interest income (expense) Fees and commissions income (expense) Reversal (provision) of credit loss Gain or loss on transactions and valuation Dividends, etc. Total Financial assets at FVTPL 106,698 (134) - 238,502 136,136 481,202 Financial assets at FVTOCI 632,615 1,606 827 (21,498) 23,846 637,396 Securities at amortized cost 515,246 - (3,151) - - 512,095 Loans and other financial assets at amortized cost 13,399,990 600,902 (881,668) 74,204 - 13,193,428 Financial liabilities at amortized cost (5,950,277) 2,094 - - - (5,948,183) Net derivatives (designated for hedging) - - - 78,822 - 78,822 Total 8,704,272 604,468 (883,992) 370,030 159,982 8,954,760 WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 107 - 12. DERECOGNITION AND OFFSET OF FINANCIAL INSTRUMENTS (1) Derecognition of financial instruments Transferred financial assets that do not meet the condition of derecognition in their entirety. 1) Bonds sold under repurchase agreements The financial instruments that were disposed but the Group agreed to repurchase at the fixed amounts at the same time, so that they did not meet the conditions of derecognition, are as follows (Unit: Korean Won in millions): December 31, 2023 December 31, 2022 Assets transferred Financial assets at FVTPL 238,461 214,577 Financial assets at FVTOCI 556,583 583,198 Securities at amortized cost 48,368 1,171,300 Total 843,412 1,969,075 Related liabilities Bonds sold under repurchase agreements 757,691 1,898,744 2) Securities loaned When the Group loans its securities to outside parties, the legal ownerships of the securities are transferred; however, they should be returned at the end of lending period. Therefore, the Group does not derecognize them from the consolidated financial statements as it owns majority of risks and benefits from the securities continuously, regardless of the transfer of legal ownership. The carrying amount of the securities loaned are as follows (Unit: Korean Won in millions): December 31, 2023 December 31, 2022 Loaned to Financial assets at FVTPL Korean treasury and government bonds 625,398 - The Korea Securities Finance Corporation Financial assets at FVTOCI Korean treasury and government bonds 592,218 98,027 Korea Securities Depository 3) Liquidity of financial assets As of December 31, 2023 and 2022, the consolidated structured companies issued asset-backed securities with loans and corporate bonds held by the Group as liquid assets, and the Group bear related risks through the purchase agreements or credit contributions. The transaction details of the transfer of the financial instrument are as follows: December 31, 2023 December 31, 2022 Carrying amount (*) Carrying amount (*) Assets transferred Financial assets at FVPL - 49,808 Loans at amortized cost 5,098,217 4,640,182 Related liabilities Asset-backed borrowings 2,434,900 231,800 Asset-backed bonds 1,487,895 1,209,364 (*) The carrying amount is the amount before the allowance for bad debts. On the other hand, the details of transferred financial assets that have not been removed, such as bonds sold under the repurchase agreement and loan securities, are also described in Note 18. The Group does not have financial instruments that are continuously involved. WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 108 - (2) The offset of financial assets and liabilities The Group possesses both the uncollected domestic exchange receivables and the unpaid domestic exchange payable, which satisfy offsetting criteria of K-IFRS 1032. Therefore, the total number of uncollected domestic exchange receivables has been offset with a part of unpaid domestic exchange payables, and they have been disclosed in loans at amortized cost and other financial assets and other financial liabilities of the Group’s statements of financial position, respectively. The Group possesses the derivative assets, derivative liabilities, receivable spot exchange and payable spot exchange that do not satisfy the offsetting criteria of K-IFRS 1032, but provide the Group under the circumstances of the trading party’s default, insolvency or bankruptcy, with the right of offsetting. Items such as cash collateral cannot satisfy the offsetting criteria of K-IFRS 1032, but in accordance with the collateral arrangements and under the circumstances of the trading party’s default, insolvency or bankruptcy, the net amount of derivative assets and derivative liabilities, receivable spot exchange and payable spot exchange can be offset. The Group has entered into a resale and repurchase agreement and accounted it as a collateralized borrowing. The Group has also entered into a resale and purchase agreement and accounted it as a secured loans. The Group under the repurchase agreements has an offsetting right only upon the counterparty’s default, insolvency or bankruptcy; thus, the repurchase agreements are applied by the TBMA/ISMA Global Master Repurchase Agreement, which does not satisfy the offsetting criteria of K-IFRS 1032. The Group disclosed bonds sold under repurchase agreements as borrowings and bonds purchased under resale agreements as loan at amortized cost and other financial assets. As of December 31, 2023 and 2022, the financial instruments to be offset and may be covered by master netting agreements and similar agreements are as follows (Unit: Korean Won in millions): December 31, 2023 Gross amounts of recognized financial assets Gross amounts of recognized financial assets setoff Net amounts of consolidated financial assets presented Related amounts not setoff in the consolidated statement of financial position Net amounts Netting agreements and others Cash collateral received and others Financial assets: Derivative assets (*1) 5,200,277 - 5,200,277 11,328,147 424,466 1,089,011 Receivable spot exchange (*2) 7,641,347 - 7,641,347 Bonds purchased under resale agreements (*2) 3,256,392 - 3,256,392 3,256,392 - - Domestic exchange settlement debits (*2) (*5) 49,034,521 48,587,951 446,570 - - 446,570 Total 65,132,537 48,587,951 16,544,586 14,584,539 424,466 1,535,581 Financial liabilities: Derivative liabilities (*1) 5,126,697 - 5,126,697 11,425,925 139,143 1,203,575 Payable spot exchange (*3) 7,641,946 - 7,641,946 Bonds sold under repurchase agreements (*4) 1,119,991 - 1,119,991 1,119,991 - - Domestic exchange settlement credits (*3) (*5) 49,974,648 48,587,951 1,386,697 1,367,709 - 18,988 Total 63,863,282 48,587,951 15,275,331 13,913,625 139,143 1,222,563 (*1) The items include derivative assets and liabilities held for trading and designated for hedging. (*2) The items are included in loan at amortized cost and other financial assets. (*3) The items are included in other financial liabilities. (*4) The items are included in borrowings. (*5) Certain financial assets and liabilities are presented as net amounts. WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 109 - December 31, 2022 Gross amounts of recognized financial assets Gross amounts of recognized financial assets setoff Net amounts of consolidated financial assets presented Related amounts not setoff in the consolidated statement of financial position Net amounts Netting agreements and others Cash collateral received and others Financial assets: Derivative assets (*1) 7,032,465 - 7,032,465 9,175,416 748,981 1,616,779 Receivable spot exchange (*2) 4,508,711 - 4,508,711 Bonds purchased under resale agreements (*2) 6,793,938 - 6,793,938 6,793,938 - - Domestic exchange settlement debits (*2) (*5) 39,787,371 39,209,452 577,919 - - 577,919 Total 58,122,485 39,209,452 18,913,033 15,969,354 748,981 2,194,698 Financial liabilities: Derivative liabilities (*1) 7,652,440 - 7,652,440 10,043,092 145,268 1,972,695 Payable spot exchange (*3) 4,508,615 - 4,508,615 Bonds sold under repurchase agreements (*4) 2,313,044 - 2,313,044 2,313,044 - - Domestic exchange settlement credits (*3) (*5) 43,841,373 39,209,452 4,631,921 2,504,062 - 2,127,859 Total 58,315,472 39,209,452 19,106,020 14,860,198 145,268 4,100,554 (*1) The items include derivative assets and liabilities held for trading and designated for hedging. (*2) The items are included in loan at amortized cost and other financial assets. (*3) The items are included in other financial liabilities. (*4) The items are included in borrowings. (*5) Certain financial assets and liabilities are presented as net amounts. WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 110 - 13. INVESTMENTS IN JOINT VENTURES AND ASSOCIATES (1) Investments in associates accounted for using the equity method of accounting are as follows: Percentage of ownership (%) Joint ventures and associates (*4) Main business December 31, 2023 December 31 2022 Location Financial statements as of Woori Bank W Service Networks Co., Ltd. (*1)(*5) Freight & staffing services 4.9 4.9 Korea 2023-11-30 Korea Credit Bureau Co., Ltd. (*2) Credit information 9.9 9.9 Korea 2023-12-31 Korea Finance Security Co., Ltd. (*1) (*5) Security service 15.0 15.0 Korea 2023-11-30 Wongwang Co., Ltd. (*3) Wholesale and real estate 29.0 29.0 Korea - Sejin Construction Co., Ltd. (*3) Construction 29.6 29.6 Korea - ARES-TECH Co., Ltd. (*3) Electronic component manufacturing 23.4 23.4 Korea - Beomgyo.,Ltd. (*3) Telecommunication equipment retail sales 23.1 23.1 Korea - NK Eng Co., Ltd. (*3) Manufacturing 23.1 23.1 Korea - Woori Growth Partnerships New Technology Private Equity Fund(*8) Other financial services - 23.1 Korea - 2016KIF-IMM Woori Bank Technology Venture Fund(*8) Other financial services - 20.0 Korea - K BANK Co., Ltd. (*2)(*5) Finance 12.6 12.6 Korea 2023-11-30 Woori Bank-Company K Korea Movie Asset Fund (*8) Other financial services - 25.0 Korea - Partner One Value Up I Private Equity Fund Other financial services 23.3 23.3 Korea 2023-12-31 IBK KIP Seongjang Dideemdol 1st Private Investment Limited Partnership Other financial services 20.0 20.0 Korea 2023-12-31 Crevisse Raim Impact 1st Startup Venture Specialist Private Equity Fund Other financial services 25.0 25.0 Korea 2023-12-31 LOTTE CARD Co., Ltd. (*5) Credit card and installment financing 20.0 20.0 Korea 2023-09-30 Union Technology Finance Investment Association Other financial services 29.7 29.7 Korea 2023-12-31 Dicustody Co., Ltd.(*2) Other information technology and computer operation related services 1.0 1.0 Korea 2023-12-31 Orient Shipyard Co., Ltd. (*5) Manufacture of sections for ships 22.7 22.7 Korea 2023-11-30 Joongang Network Solution Co.,Ltd. (*5) Other information technology and computer operation related services 25.3 25.3 Korea 2023-09-30 Win Mortgage Co.,LTd. (*1)(*5)(*12) Other financial services 4.5 - Korea 2023-09-30 Together-Korea Government Private Pool Private Securities Investment Trust No. 3 Other financial services 100.0 100.0 Korea 2023-12-31 BTS 2nd Private Equity Fund Other financial services 20.0 20.0 Korea 2023-12-31 STASSETS FUND III Other financial services 28.3 28.3 Korea 2023-12-31 WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 111 - Percentage of ownership (%) Joint ventures and associates (*4) Main business December 31, 2023 December 31 2022 Location Financial statements as of SF CREDIT PARTNERS, LLC(*2)(*12) Other financial services 10.0 - Korea 2023-12-31 Rea Company (*5) (*12) Other financial services 24.5 - Korea 2023-09-30 ARAM CMC Co.,Ltd. (*5) (*12) Other financial services 20.0 - Korea 2023-11-30 Woori Bank (*6) Japanese Hotel Real Estate Private Equity Fund No.2 Other financial services 19.9 19.9 Korea 2023-12-31 Woori Seoul Beltway Private Special Asset Fund No.1 Trust and collective investment 25.0 25.0 Korea 2023-12-31 Woori General Private Securities Investment Trust(Bond) No.1 (*12) Collective investment business 25.0 - Korea 2023-12-31 Woori Short-term Bond Securities Investment Trust(Bond) ClassC-F Collective investment business 15.0 27.9 Korea 2023-12-31 Woori Safe Plus General Type Private Investment Trust S- 8(Bond) Collective investment business 9.1 9.2 Korea 2023-12-31 Woori General Private Securities Investment Trust(Bond) No.2 (*12) Collective investment business 27.3 - Korea 2023-12-31 Woori Smart General Private Equity Investment Trust 1(bond)(*12) Collective investment business 28.6 - Korea 2023-12-31 Woori General Private Securities Investment Trust(Bond) No.3 (*12) Collective investment business 27.8 - Korea 2023-12-31 Woori Asset Global Partnership Fund No. 5(*12) Collective investment business 57.7 - Korea 2023-12-31 Woori Short Term Government and Special Bank Bond Active ETF(*12) Collective investment business 20.8 - Korea 2023-12-31 Woori 25-09 Corporate Bond(AA- or higher) Active ETF (*12) Collective investment business 29.3 - Korea 2023-12-31 Woori Financial Capital Co., Ltd. WOORI TAERIM 1st Fund Other financial services 25.6 25.6 Korea 2023-12-31 Portone-Cape Fund No.1 Other financial services 20.0 20.0 Korea 2023-12-31 KIWOOM WOORI Financial 1st Fund (*7)(*8) Other financial services - 9.1 Korea - DeepDive WOORI 2022-1 Financial Investment Fund (*7) Other financial services 11.9 11.9 Korea 2023-12-31 Darwin Green Packaging Private Equity Fund Other financial services 20.4 20.4 Korea 2023-12-31 DS Power Semicon Private Equity Fund (*8) Other financial services - 21.0 Korea - Koreawide partners 2nd Private Equity Fund Other financial services 26.7 26.7 Korea 2023-12-31 Woori Investment Bank Co., Ltd. (*6) Woori FirstValue Private Real Estate Fund No.2 Real estate business 12.0 12.0 Korea 2023-12-31 WooriG Real Infrastructure Blind General Type Private Placement Investment Trust Investment trust and discretionary investment business 0.1 0.1 Korea 2023-12-31 WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 112 - Percentage of ownership (%) Joint ventures and associates (*4) Main business December 31, 2023 December 31 2022 Location Financial statements as of Woori Asset Management Co. Ltd. Woori Star50 feeder fund(H) (*8) Collective investment business - 17.9 Korea - Woori Together TDF 2025(*8) Collective investment business - 23.6 Korea - Woori Together TDF 2030 Collective investment business 28.0 23.8 Korea 2023-12-31 Woori Together OCIO Target Return Feeder fund (Balance Bond) (*12) Collective investment business 20.4 - Korea 2023-12-31 Woori Multi Return Private Securities Investment Trust 2(Balanced Bond)(*8)(*12) Collective investment business - - Korea - Woori Private Equity Asset Management Co., Ltd. Australia Green Energy 1st PEF(*2) Other financial services 4.0 4.0 Korea 2023-12-31 Aarden Woori Apparel 1st Private Equity Fund (*2) Other financial services 0.5 0.5 Korea 2023-12-31 Woori Dyno 1st Private Equity Fund (*2) Other financial services 19.6 19.6 Korea 2023-12-31 Woori Venture Partners Co., Ltd. KTB-KORUS FUND(*9) Asset Management 37.5 - Korea 2023-12-31 KTB China Platform Fund(*9)(*10)(*11) Asset Management 18.7 - Korea 2023-12-31 KTBN Venture Fund No.7(*9)(*10) Asset Management 20.1 - Korea 2023-12-31 KTBN Venture Fund No.8(*10) Asset Management 21.7 - Korea 2023-12-31 KTBN Digital Contents Korea Fund No.9(*9)(*10) Asset Management 30.0 - Korea 2023-12-31 KTBN Media Contents Fund(*9)(*10)(*11) Asset Management 15.0 - Korea 2023-12-31 KTB China Synergy Fund(*10)(*11) Asset Management 15.1 - Korea 2023-12-31 NAVER-KTB Audio Contents Fund(*11) Asset Management 1.0 - Korea 2023-12-31 KTBN Venture Fund No.13(*10)(*11) Asset Management 19.6 - Korea 2023-12-31 KTBN Future Contents Fund(*10)(*11) Asset Management 13.3 - Korea 2023-12-31 KTBN Venture Fund No.16(*11) Asset Management 10.3 - Korea 2023-12-31 KTBN Venture Fund No.18(*11) Asset Management 10.1 - Korea 2023-12-31 KB-KTB Technology Venture Fund(*11) Asset Management 18.2 - Korea 2023-12-31 Woori 2022 Scaleup Venture Fund Asset Management 20.0 - Korea 2023-12-31 Woori 2022 Start-up Venture Fund Asset Management 30.1 - Korea 2023-12-31 KTB-NHN China Private Equity Fund(*9) Asset Management 33.3 - Korea 2023-12-31 KTBN GI Private Equity Fund(*11) Asset Management 5.0 - Korea 2023-12-31 Chirochem Medical material Manufacturing 28.6 - Korea 2023-12-31 Japanese Hotel Real Estate Private Equity Fund 1 Godo Kaisha Oceanos 1 (*5) Other financial services 47.8 47.8 Japan 2023-10-31 WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 113 - Percentage of ownership (%) Joint ventures and associates (*4) Main business December 31, 2023 December 31 2022 Location Financial statements as of Woori G Japan Private Placement Real Estate Master Investment Trust No.2 Woori Zip 1(*5) Other financial services 62.4 64.0 Japan 2023-09-30 Woori Zip 2 (*5) Other financial services 62.8 64.0 Japan 2023-09-30 Woori bank and Woori card Co., Ltd. (*6) Dongwoo C & C Co., Ltd. (*3) Construction 24.5 24.5 Korea - SJCO Co., Ltd. (*3) Aggregate transportation and wholesale 29.8 29.8 Korea - G2 Collection Co., Ltd. (*3) Wholesale and retail sales 29.2 29.2 Korea - KG Fashion Co., Ltd.(*3)(*5)(*12) Manufacturing 20.8 - Korea 2023-11-30 Kyesan Engineering Co., Ltd. (*3) Construction 23.3 23.3 Korea - Good Software Lap Co., Ltd. (*3) Service 29.4 29.4 Korea - Force TEC Co., Ltd. (*8) Manufacturing - 24.5 Korea - DAEA SNC Co., Ltd. (*3) Wholesale and retail sales 25.5 25.5 Korea - PREXCO Co., Ltd. (*3) Manufacturing 28.1 28.1 Korea - JiWon Plating Co., Ltd. (*3) Plating 20.8 20.8 Korea - Youngdong Sea Food Co., Ltd. (*3) Processed sea food manufacturing 24.5 24.5 Korea - KUM HWA Co., Ltd. Telecommunication equipment retail sales 20.1 20.1 Korea 2023-12-31 Jinmyung Plus Co., Ltd.(*5) Manufacturing 21.3 21.3 Korea 2023-09-30 Woori bank and Woori Financial Capital Co., Ltd. (*6) JC Assurance No.2 Private Equity Fund Other financial services 23.5 23.5 Korea 2023-12-31 Dream Company Growth no.1 PEF Other financial services 27.8 27.8 Korea 2023-12-31 HMS-Oriens 1st Fund Other financial services 22.8 22.8 2023-12-31 Woori G Senior Loan Private Placement Investment Trust No.1 Collective investment business 21.7 21.7 Korea 2023-12-31 Genesis Eco No.1 Private Equity Fund Other financial services 29.0 29.0 Korea 2023-12-31 Paratus Woori Material Component Equipment joint venture company Other financial services 29.9 29.9 Korea 2023-12-31 Midas No. 8 Private Equity Joint Venture Company Other financial services 28.5 28.5 Korea 2023-12-31 Orchestra Private Equity Fund IV Other financial services 28.2 28.2 Korea 2023-12-31 Synaptic Green No.1 PEF Other financial services 21.1 21.1 Korea 2023-12-31 IGEN2023No. 1 Private Equity Fund Other financial services 24.8 24.8 Korea 2023-12-31 PCC-Woori LP Secondary Fund Other financial services 38.9 38.8 Korea 2023-12-31 Synaptic Future Growth Private Equity Fund 1 (*12) Other financial investment 23.8 - Korea 2023-12-31 WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 114 - Percentage of ownership (%) Joint ventures and associates (*4) Main business December 31, 2023 December 31 2022 Location Financial statements as of Woori Bank and Woori Asset Management Co. Ltd.(*6) Woori BIG2 Plus Securities Investment Trust(Balanced Bond) Collective investment business 14.1 23.1 Korea 2023-12-31 Woori Bank and Woori Private Equity Asset Management Co., Ltd. (*6) Woori-Q Corporate Restructuring Private Equity Fund(*13) Other financial services 32.4 35.6 Korea 2023-12-31 Woori Bank, Woori Financial Capital Co., Ltd., Woori Investment Bank Co., Ltd. and Woori Private Equity Asset Management Co., Ltd. (*6) Woori-Shinyoung Growth-Cap Private Equity Fund I Other financial services 35.0 35.0 Korea 2023-12-31 NH Woori Newdeal Growth Alpha Private Equity Fund 1(*12) Other financial services 32.7 - Korea 2023-12-31 (*1) Most of the significant business transactions of associates are with the Group as of December 31, 2023 and 2022. (*2) The Group can participate in decision-making body and exercise significant influence over financial policies and operational policies decision making of the associates. (*3) There is no investment balance as of December 31, 2023 and 2022. (*4) Woori G Oncorp Corporate support of Major Industry General Type Private Placement Investment Trust (Type 2) and other 12 joint ventures and associates can exercise significant influence but was classified as an item measured at fair value through profit or loss. (*5) The equity method was applied using the most recent financial statements available from the settlement date because no financial statements were available at the end of the reporting period and the significant transactions or events that occurred between the end of the reporting period of the associate and the end of the reporting period of the subsidiary were duly reflected. (*6) Two or more subsidiaries may invest or operate to exert significant influence on the decision-making process for activities related to the investee. (*7) The Group can participate as a co-operator to exert significant influence. (*8) It was excluded from associates in current year. (*9) It has been liquidating as of December 31, 2023. (*10) It was excluded from associates during the period. (*11) The Group classified it as an associate because it has significant influence as a general partner of the investment association. (*12) It was added to associates in current year. (*13) It was classified as an associate due to holding of voting rights according to the initial investment agreement ratio. WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 115 - (2) Changes in the carrying value of investments in associates accounted for using the equity method of accounting are as follows (Unit: Korean Won in millions): For the year ended December 31, 2023 Acquisition cost January 1, 2023 Share of profits(losses) and others Acquisition Business combination Disposal/ Reclassification Dividends Change in capital December 31, 2023 W Service Networks Co., Ltd. 108 208 13 - - - (5) - 216 Korea Credit Bureau Co., Ltd. 3,313 5,709 814 - - - (90) - 6,433 Korea Finance Security Co., Ltd. 3,267 2,374 (99) - - - - 1,010 3,285 Woori Growth Partnerships New Technology Private Equity Fund - 10,889 (51) - - (10,838) - - - 2016KIF-IMM Woori Bank Technology Venture Fund - 9,474 539 - - (10,013) - - - K BANK Co., Ltd. 236,232 247,789 5,327 - - - - 6,936 260,052 Woori Bank-Company K Korea Movie Asset Fund - 239 52 - - (103) (188) - - Partner One Value Up I Private Equity Fund 5,039 4,278 (1,048) - - - - - 3,230 IBK KIP Seongjang Dideemdol 1st Private Investment Limited Partnership 4,356 10,285 1,162 - - (3,200) - - 8,247 Crevisse Raim Impact 1st Startup Venture Specialist Private Equity Fund 4,436 4,355 - 82 - - - - 4,437 LOTTE CARD Co.,Ltd. 346,810 514,131 91,533 - - - (13,199) (5,073) 587,392 Union Technology Finance Investment Association 13,449 14,462 (1,004) - - (1,188) - - 12,270 Dicustody Co., Ltd. 1 1 - - - - - - 1 Orient Shipyard Co., Ltd.(*) - - - - - - - - - Joongang Network Solution Co.,Ltd. - - 1 - - - - 87 88 Win Mortgage Co.,LTd. 23 - 84 23 - - (2) - 105 Together-Korea Government Private Pool Private Securities Investment Trust No.3 10,000 10,243 297 - - - - - 10,540 BTS 2nd Private Equity Fund 5,226 2,881 (243) 2,200 - - - - 4,838 STASSETS FUND III 9,000 1,230 (324) 7,500 - - - - 8,406 SF CREDIT PARTNERS, LLC 13,059 - 99 13,059 - - - (313) 12,845 Japanese Hotel Real Estate Private Equity Fund No.2 3,174 2,855 86 - - - (133) (120) 2,688 Woori Seoul Beltway Private Special Asset Fund No.1 12,464 9,874 451 2,709 - - (444) - 12,590 Woori General Private Securities Investment Trust(Bond) No.1 50,000 - 1,686 50,000 - - - - 51,686 Woori Short-term Bond Securities Investment Trust(Bond) ClassC- F 100,000 112,025 7,670 - - (10,352) (3,779) - 105,564 Woori Safe Plus General Type Private Investment Trust S- 8(Bond) 10,000 10,182 507 - - - (359) - 10,330 Woori General Private Securities Investment Trust(Bond) No.2 30,000 - 829 30,000 - - - - 30,829 Woori Smart General Private Equity Investment Trust 1(bond) 40,000 - 1,135 40,000 - - - - 41,135 Woori General Private Securities Investment Trust(Bond) No.2 50,000 - 1,205 50,000 - - - - 51,205 Woori Asset Global Partnership Fund No.5 22,500 - (429) 22,500 - - - - 22,071 WOORI TAERIM 1st Fund 1,100 988 - - - - - - 988 Portone-Cape Fund No.1 340 464 (19) - - - - - 445 KIWOOM WOORI Financial 1st Fund - 953 (10) - - (943) - - - DeepDive WOORI 2021-1 Financial Investment Fund 222 878 1,128 - - (678) (92) - 1,236 Darwin Green Packaging Private Equity Fund 4,000 3,945 92 - - - (80) - 3,957 DS Power Semicon Private Equity Fund - 2,976 495 - - (2,971) (500) - - Koreawide partners 2nd Private Equity Fund 20,000 20,000 (765) - - - - - 19,235 WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 116 - For the year ended December 31, 2023 Acquisition cost January 1, 2023 Share of profits(losses) and others Acquisition Business combination Disposal/ Reclassification Dividends Change in capital December 31, 2023 Woori FirstValue Private Real Estate Fund No.2 9,000 558 2 - - - - - 560 WooriG Real Infrastructure Blind General Type Private Placement Investment Trust 52 102 4 - - (47) (4) - 55 Woori Star50 feeder fund(H) - 126 (12) - - (114) - - - Woori Together TDF 2025 - 1,990 116 - - (2,106) - - - Woori Together TDF 2030 3,000 2,033 291 1,000 - - - - 3,324 Woori Together OCIO Target Return Feeder fund (Balance Bond) 10,000 - 348 - - 10,028 - - 10,376 Australia Green Energy 1st PEF 4,913 4,858 (47) - - - - - 4,811 Aarden Woori Apparel 1st Private Equity Fund 100 97 36 - - - - - 133 Woori Dyno 1st Private Equity Fund 2,000 1,994 364 - - - - - 2,358 KTB-KORUS FUND 3,626 - (267) - 3,626 - - - 3,359 KTB China Platform Fund 17,023 - (964) - 17,023 - - - 16,059 KTBN Venture Fund No.7 16,972 - (225) - 16,972 - (703) - 16,044 KTBN Venture Fund No.8 3,325 - (814) - 3,325 - - - 2,511 KTBN Digital Contents Korea Fund No.9 5,329 - 268 - 5,329 - - - 5,597 KTBN Media Contents Fund 330 - (20) - 330 - (27) - 283 KTB China Synergy Fund 21,629 - (1,224) - 21,629 - - - 20,405 NAVER-KTB Audio Contents Fund 284 - 4 - 284 - - - 288 KTBN Venture Fund No.13 13,279 - 3,407 - 13,279 - (2,528) - 14,158 KTBN Future Contents Fund 3,892 - 669 - 3,892 - - - 4,561 KTBN Venture Fund No.16 17,546 - 1,015 - 17,546 - - - 18,561 KTBN Venture Fund No.18 26,308 - 662 2,850 23,458 - - - 26,970 KB-KTB Technology Venture Fund 7,755 - (155) 2,000 5,755 - - - 7,600 WOORI 2022 Scaleup Venture Fund 14,000 - (414) 13,645 355 - (8) - 13,578 WOORI 2022 Start-up Venture Fund 2,564 - (131) - 2,564 - - - 2,433 KTB-NHN China Private Equity Fund 1,272 - (103) - 1,272 - (1,024) (142) 3 KTBN GI Private Equity Fund 189 - 392 - 189 - - 36 617 Chirochem 102 - - - 102 - - - 102 Godo Kaisha Oceanos 1 10,800 8,788 92 - - - (748) (154) 7,978 Woori Zip 1 8,706 8,690 (127) - - (548) - (386) 7,629 Woori Zip 2 8,411 12,180 (107) - - (844) - (534) 10,695 KG Fashion Co., Ltd.(*) - - - - - - - - - KUM HWA Co., Ltd. (*) - - - - - - - - - Jinmyung Plus Co., Ltd. - 10 4 - - - - - 14 JC Assurance No.2 Private Equity Fund (*) 29,349 - - - - - - - - Dream Company Growth no.1 PEF 7,153 7,861 362 - - - (414) - 7,809 HMS-Oriens 1st Fund 12,000 13,252 778 - - - - - 14,030 Woori G Senior Loan Private Placement Investment Trust No.1 75,114 81,861 3,341 - - (5,975) (3,637) - 75,590 Genesis Eco No.1 Private Equity Fund 12,000 11,216 (274) - - - - - 10,942 Paratus Woori Material Component Equipment joint venture company 17,700 17,250 (271) - - - - - 16,979 Midas No. 8 Private Equity Joint Venture Company 18,537 18,713 282 - - - (530) - 18,465 Orchestra Private Equity Fund IV 9,700 9,698 457 - - (178) (422) - 9,555 Synaptic Green No.1 PEF 8,000 7,793 (182) - - - - - 7,611 IGEN2022No. 1 Private Equity Fund 7,422 8,010 336 - - - (363) - 7,983 PCC-Woori LP Secondary Fund 10,435 12,984 (2,450) - - (4) - - 10,530 Synaptic Future Growth Private Equity Fund 7,295 - (226) 7,295 - - - - 7,069 WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 117 - For the year ended December 31, 2023 Acquisition cost January 1, 2023 Share of profits(losses) and others Acquisition Business combination Disposal/ Reclassification Dividends Change in capital December 31, 2023 Woori-Q Corporate Restructuring Private Equity Fund 17,441 27,536 2,708 369 - (10,330) - - 20,283 Woori-Shinyoung Growth-Cap Private Equity Fund I 17,018 43,274 (9,793) - - - - - 33,481 NH Woori Newdeal Growth Alpha Private Equity Fund 1 34,006 - (1,019) 34,006 - - - - 32,987 Woori BIG2 Plus Securities Investment Trust(Balanced Bond) 2,200 1,074 543 2,000 - (1,074) - - 2,543 Woori Short Term Government and Special Bank Bond Active ETF 12,008 - 103 - - 12,183 - - 12,286 Woori 25-09 Corporate Bond(AA- or higher) Active ETF 29,001 - 820 29,001 - - - - 29,821 1,536,905 1,305,636 109,792 310,239 136,930 (39,295) (29,279) 1,347 1,795,370 (*) The amount for which no loss was recognized for associates due to discontinuation of the equity method was 2 million Won for KUM HWA Co., Ltd., 28 million Won for Orient Shipyard Co.,Ltd., 120 million Won in KG FASHION CO., LTD., 371 million Won in JC Assurance No.2 Private Equity Fund and the accumulated amount is 4 million Won for KUM HWA Co., Ltd., 28 million Won for Orient Shipyard Co.,Ltd., 120 million Won in KG FASHION CO., LTD., 371 million Won in JC Assurance No.2 Private Equity Fund. For the year ended December 31, 2022 Acquisition cost January 1, 2022 Share of profits(losses) and others Acquisition Disposal/ Reclassification Dividends Change in capital December 31, 2022 W Service Networks Co., Ltd. 108 183 29 - - (4) - 208 Korea Credit Bureau Co., Ltd. 3,313 9,423 (3,714) - - - - 5,709 Korea Finance Security Co., Ltd. 3,267 3,101 (727) - - - - 2,374 Woori Growth Partnerships New Technology Private Equity Fund 12,942 12,448 490 - (2,049) - - 10,889 2016KIF-IMM Woori Bank Technology Venture Fund 7,594 12,630 (1,619) - (801) (736) - 9,474 K BANK Co., Ltd. 236,232 239,493 11,854 - - - (3,558) 247,789 Woori Bank-Company K Korea Movie Asset Fund - 345 71 - - (177) - 239 Partner One Value Up I Private Equity Fund 5,039 6,576 (2,298) - - - - 4,278 IBK KIP Seongjang Dideemdol 1st Private Investment Limited Partnership 7,556 11,153 1,312 - (2,180) - - 10,285 Crevisse Raim Impact 1st Startup Venture Specialist Private Equity Fund 4,355 4,254 1 100 - - - 4,355 LOTTE CARD Co.,Ltd. 346,810 458,295 58,400 - - (12,960) 10,396 514,131 Together-Korea Government Private Pool Private Securities Investment Trust No. 3 10,000 10,070 173 - - - - 10,243 Genesis Environmental Energy Company 1st Private Equity Fund - 4,126 (41) - (3,738) (347) - - Union Technology Finance Investment Association 14,637 12,388 187 2,250 (363) - - 14,462 Dicustody Co., Ltd. 1 1 - - - - - 1 Orient Shipyard Co., Ltd. - - - - - - - - BTS 2nd Private Equity Fund 3,026 - (145) 3,026 - - - 2,881 STASSETS FUND III 1,500 - (270) 1,500 - - - 1,230 Japanese Hotel Real Estate Private Equity Fund No.2 3,174 3,196 194 - - (299) (236) 2,855 WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 118 - For the year ended December 31, 2022 Acquisition cost January 1, 2022 Share of profits(losses) and others Acquisition Disposal/ Reclassification Dividends Change in capital December 31, 2022 Woori Seoul Beltway Private Special Asset Fund No.1 9,791 7,551 246 2,312 - (235) - 9,874 Woori Multi-Return Securities Investment Trust 3 (Balanced Bond) - 10,023 - - (9,950) (73) - - Woori Short-term Bond Securities Investment Trust(Bond) ClassC-F 110,000 151,822 2,312 50,000 (90,137) (1,972) - 112,025 Woori Safe Plus General Type Private Investment Trust S- 8(Bond) 10,000 - 230 10,000 - (48) - 10,182 WOORI TAERIM 1st Fund 1,100 991 (3) - - - - 988 Portone-Cape Fund No.1 340 489 (25) - - - - 464 KIWOOM WOORI Financial 1st Investment Fund 1,000 973 (20) - - - - 953 DeepDive WOORI 2021-1 Financial Investment Fund 900 993 (12) - (100) (3) - 878 Darwin Green Packaging Private Equity Fund 4,000 3,957 388 - - (400) - 3,945 DS Power Semicon Private Equity Fund 3,000 - 245 3,000 - (269) - 2,976 Koreawide partners 2nd Private Equity Fund 20,000 - - 20,000 - - - 20,000 Woori FirstValue Private Real Estate Fund No.2 9,000 763 (6) - (199) - - 558 WooriG Real Infrastructure Blind General Type Private Placement Investment Trust 100 100 2 - - - - 102 Woori BIG2 Plus Securities Investment Trust(Balanced Bond) 1,200 - (161) - 1,235 - - 1,074 Woori Together TDF 2025 2,000 - (202) - 2,192 - - 1,990 Woori Together TDF 2030 2,000 - (214) - 2,247 - - 2,033 WOORI Star50 feeder fund(H) 200 - (5) - 131 - - 126 Woori Hanhwa Eureka Private Equity Fund - 327 (48) - (164) (115) - - Aarden Woori Apparel 1st Private Equity Fund 100 99 (2) - - - - 97 Woori Dyno 1st Private Equity Fund 2,000 - (6) 2,000 - - - 1,994 Australia Green Energy 1st PEF 4,913 - (55) 4,913 - - - 4,858 Godo Kaisha Oceanos 1 10,800 9,905 84 - - (1,049) (152) 8,788 Woori Zip 1 9,254 10,496 (138) - (873) - (795) 8,690 Woori Zip 2 12,928 14,732 (127) - (1,309) - (1,116) 12,180 Force TEC Co., Ltd. (*) - - 56 - - - (56) - KUM HWA Co., Ltd. (*) - - - - - - - - Jinmyung Plus Co., Ltd. - - 10 - - - - 10 JC Assurance No.2 Private Equity Fund 29,349 17,728 (17,728) - - - - - Dream Company Growth no.1 PEF 7,412 7,914 418 - - (471) - 7,861 HMS-Oriens 1st Fund 12,000 12,007 1,245 - - - - 13,252 WooriG Senior Loan General Type Private Investment Trust No.1 80,268 88,029 3,788 14,073 (20,322) (3,707) - 81,861 Genesis Eco No.1 Private Equity Fund 12,000 11,120 (99) 195 - - - 11,216 WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 119 - For the year ended December 31, 2022 Acquisition cost January 1, 2022 Share of profits(losses) and others Acquisition Disposal/ Reclassification Dividends Change in capital December 31, 2022 Paratus Woori Material Component Equipment joint venture company 17,700 17,493 (243) - - - - 17,250 Midas No. 8 Private Equity Joint Venture Company 18,735 18,968 275 - - (530) - 18,713 Orchestra Private Equity Fund IV 9,878 - 197 10,000 (122) (377) - 9,698 Synaptic Green No.1 PEF 8,000 - (207) 8,000 - - - 7,793 IGEN2022No. 1 Private Equity Fund 7,822 - 650 8,000 (475) (165) - 8,010 PCC-Woori LP Secondary Fund 10,440 12,350 674 3,440 (3,480) - - 12,984 Woori High Plus Short-term High Graded ESG Bond Sec Feeder Inv Trust 1 - 73,787 - - (73,598) (189) - - Woori-Q Corporate Restructuring Private Equity Fund 27,063 46,155 (288) 536 (18,867) - - 27,536 Woori-Shinyoung Growth- Cap Private Equity Fund I 17,018 28,713 14,561 - - - - 43,274 1,131,865 1,335,167 69,689 143,345 (222,922) (24,126) 4,483 1,305,636 (*) As a result of discontinuation of the equity method, related companies’ losses amount not recognized is 665 million Won for Force TEC Co., Ltd. 3,743 million Won for Orient Shipyard Co., Ltd. and 0.2 million Won for KUM HWA Co., Ltd. and cumulated amount is 1,462 million Won for Force TEC Co., Ltd. 3,743 million Won for Orient Shipyard Co., Ltd. and 2 million Won for KUM HWA Co., Ltd. WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 120 - (3) Summary financial information relating to investments in associates accounted for using the equity method of accounting is as follows (Unit: Korean Won in millions): December 31, 2023 Assets Liabilities Operating revenue Net income (loss) Other comprehensive income(loss) Total comprehensive income(loss) W Service Networks Co., Ltd. 6,887 2,496 19,350 1,069 - 1,069 Korea Credit Bureau Co., Ltd. 131,164 68,756 163,707 8,012 - 8,012 Korea Finance Security Co., Ltd. 36,185 14,287 44,709 (464) 6,730 6,266 K BANK Co., Ltd. 20,799,599 18,903,298 826,894 49,853 47,885 97,738 Partner One Value Up I Private Equity Fund 14,182 293 (4,107) (4,505) - (4,505) IBK KIP Seongjang Dideemdol 1st Private Investment Limited Partnership 41,533 305 6,501 5,823 - 5,823 Crevisse Raim Impact 1st Startup Venture Specialist Private Equity Fund 15,754 100 2 (388) - (388) LOTTE CARD Co., Ltd. (*1) 22,329,308 19,191,007 1,937,383 363,673 (19,888) 343,785 Union Technology Finance Investment Association 41,543 233 2,261 (838) - (838) Dicustody Co., Ltd. 92 - - (3) - (3) Orient Shipyard Co., Ltd. 10,708 27,225 - (124) - (124) Joongang Network Solution Co.,Ltd. 1,505 3,156 5,758 5 - 5 Win Mortgage Co.,LTd. 3,518 1,197 9,309 378 - 378 Together-Korea Government Private Pool Private Securities Investment Trust No. 3 10,543 1 227 222 - 222 BTS 2nd Private Equity Fund 25,030 837 4 (1,213) - (1,213) STASSETS FUND III 30,014 312 95 (1,145) - (1,145) SF CREDIT PARTNERS, LLC 149,157 25,996 7,618 (4,610) (2,819) (7,429) Rea Company 2,248 3,736 802 (694) - (694) ARAM CMC Co.,Ltd. 669 485 1,005 (254) - (254) Japanese Hotel Real Estate Private Equity Fund No.2 13,541 12 54 46 (602) (556) Woori Seoul Beltway Private Special Asset Fund No.1 50,362 2 1,858 1,805 - 1,805 Woori General Private Securities Investment Trust(Bond) No.1 414,760 208,014 12,617 6,746 - 6,746 Woori Short-term Bond Securities Investment Trust(Bond) ClassC-F 828,793 126,879 34,607 31,283 - 31,283 Woori Safe Plus General Type Private Investment Trust S-8(Bond) 113,413 6 4,774 4,542 - 4,542 Woori General Private Securities Investment Trust(Bond) No.2 224,205 111,165 5,767 3,040 - 3,040 Woori Smart General Private Equity Investment Trust 1(bond) 289,553 145,580 7,373 3,973 - 3,973 Woori General Private Securities Investment Trust(Bond) No.3 532,139 347,809 9,304 4,342 - 4,342 Woori Asset Global Partnership Fund No.5 38,537 281 - (744) - (744) WOORI TAERIM 1st Fund 4,045 183 - - - - Portone-Cape Fund No.1 2,324 100 - (103) - (103) DeepDive WOORI 2021-1 Financial Investment Fund 10,400 19 9,607 9,467 - 9,467 Darwin Green Packaging Private Equity Fund 19,390 - 759 451 - 451 Koreawide partners 2nd Private Equity Fund 75,064 2,931 - (2,831) - (2,831) Woori FirstValue Private Real Estate Fund No.2 67,024 62,357 32 18 - 18 WooriG Real Infrastructure Blind General Type Private Placement Investment Trust 114,909 92 6,053 4,892 - 4,892 Woori Together TDF 2030 11,944 61 2,528 1,017 - 1,017 Woori Together OCIO Target Return Feeder fund (Balance Bond) 50,831 1 2,446 2,444 - 2,444 Australia Green Energy 1st PEF 121,454 24 508 (1,189) - (1,189) Aarden Woori Apparel 1st Private Equity Fund 28,219 90 1 (332) - (332) Woori Dyno 1st Private Equity Fund 12,068 43 2,053 1,886 - 1,886 WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 121 - December 31, 2023 Assets Liabilities Operating revenue Net income (loss) Other comprehensive income(loss) Total comprehensive income(loss) KTB-KORUS FUND 8,957 1 127 (712) - (712) KTB China Platform Fund 85,909 13 2,411 (5,160) - (5,160) KTBN Venture Fund No.7 79,871 - 6,420 508 - 508 KTBN Venture Fund No.8 11,758 207 2,359 (4,559) - (4,559) KTBN Digital Contents Korea Fund No.9 20,257 1,599 3,030 (1,142) - (1,142) KTBN Media Contents Fund 1,887 - 199 (35) - (35) KTB China Synergy Fund 145,464 9,977 23,055 (8,686) - (8,686) NAVER-KTB Audio Contents Fund 29,419 652 1,017 237 - 237 KTBN Venture Fund No.13 72,943 737 21,662 18,507 - 18,507 KTBN Future Contents Fund 34,696 486 7,394 4,776 - 4,776 KTBN Venture Fund No.16 182,850 1,875 40,201 11,133 - 11,133 KTBN Venture Fund No.18 268,437 2,526 31,543 8,036 - 8,036 KB-KTB Technology Venture Fund 42,046 246 2,055 (1,076) - (1,076) WOORI 2022 Scaleup Venture Fund 68,626 826 504 (2,758) - (2,758) WOORI 2022 Start-up Venture Fund 8,237 156 42 (576) - (576) KTB-NHN China Private Equity Fund 16 7 946 (315) (319) (634) KTBN GI Private Equity Fund 12,391 45 - 7,146 712 7,858 Chirochem 732 375 4,215 148 - 148 Godo Kaisha Oceanos 1 62,021 45,334 2,765 192 - 192 Woori Zip 1 44,448 31,702 2,066 (198) - (198) Woori Zip 2 62,642 45,012 3,023 (167) - (167) KG Fashion Co., Ltd. 2,559 3,022 943 (569) - (569) KUM HWA Co., Ltd. 4 167 - - - - Jinmyung Plus Co., Ltd. 519 454 146 (3) - (3) JC Assurance No.2 Private Equity Fund 121,596 8 - (628) - (628) Dream Company Growth no.1 PEF 28,366 255 1,490 1,300 - 1,300 HMS-Oriens 1st Fund 61,498 1 3,957 3,408 - 3,408 Woori G Senior Loan Private Placement Investment Trust No.1 349,154 22 17,759 16,726 - 16,726 Genesis Eco No.1 Private Equity Fund 38,064 314 - (947) - (947) Paratus Woori Material Component Equipment joint venture company 58,298 1,510 - (906) - (906) Midas No. 8 Private Equity Joint Venture Company 65,063 242 1,956 1,002 - 1,002 Orchestra Private Equity Fund IV 34,041 122 1,680 1,172 - 1,172 Synaptic Green No.1 PEF 36,325 175 4 (867) - (867) IGEN2022No. 1 Private Equity Fund 32,255 124 1,847 1,350 - 1,350 PCC-Woori LP Secondary Fund 27,773 668 908 (6,350) - (6,350) Synaptic Future Growth Private Equity Fund 1 30,049 301 2 (951) - (951) Woori-Q Corporate Restructuring Private Equity Fund 63,265 456 4,945 3,018 - 3,018 Woori-Shinyoung Growth-Cap Private Equity Fund I 97,265 1,522 (26,435) (27,768) - (27,768) NH Woori Newdeal Growth Alpha Private Equity Fund 1 100,215 1,588 2 (3,605) - (3,605) Woori BIG2 Plus Securities Investment Trust(Balanced Bond) 16,630 5 1,383 1,383 - 1,383 Woori 25-09 Corporate Bond(AA- or higher) Active ETF 133,729 32,028 3,006 2,831 - 2,831 Woori Short Term Government and Special Bank Bond Active ETF 62,185 3,212 1,222 978 - 978 (*1) The amount is after reflecting the fair value adjustment that occurred when acquiring the shares and the adjustments that occurred by difference of accounting policies with the Group. WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 122 - December 31, 2022 Assets Liabilities Operating revenue Net income (loss) Other comprehensive income(loss) Total comprehensive income(loss) W Service Networks Co., Ltd. 7,052 2,825 19,697 1,215 - 1,215 Korea Credit Bureau Co., Ltd. 155,165 100,065 144,907 13,809 - 13,809 Korea Finance Security Co., Ltd. 28,792 12,964 47,043 (3,856) - (3,856) Woori Growth Partnerships New Technology Private Equity Fund 47,394 208 2,978 2,185 - 2,185 2016KIF-IMM Woori Bank Technology Venture Fund 47,979 609 665 (7,839) - (7,839) K BANK Co., Ltd. 16,694,289 14,896,426 491,880 91,059 (32,156) 58,903 Woori Bank-Company K Korea Movie Asset Fund (*1) 989 33 462 324 - 324 Partner One Value Up I Private Equity Fund 18,395 - (9,431) (9,831) - (9,831) IBK KIP Seongjang Dideemdol 1st Private Investment Limited Partnership 51,804 385 8,092 7,288 - 7,288 Crevisse Raim Impact 1st Startup Venture Specialist Private Equity Fund 15,811 95 1 (383) - (383) LOTTE CARD Co., Ltd. (*2) 19,983,059 17,179,093 1,925,577 268,096 43,162 311,258 Together-Korea Government Private Pool Private Securities Investment Trust No. 3 10,246 1 218 170 - 170 Union Technology Finance Investment Association 48,991 299 2,300 632 - 632 Dicustody Co., Ltd. 95 - - (3) - (3) Orient Shipyard Co., Ltd. 10,832 27,225 - (16,467) - (16,467) BTS 2nd Private Equity Fund 15,012 608 1 (725) - (725) STASSETS FUND III 4,660 313 37 (953) - (953) Japanese Hotel Real Estate Private Equity Fund 2 14,387 13 1,050 968 (1,186) (218) Woori Seoul Beltway Private Special Asset Fund No.1 39,497 2 1,028 984 - 984 Woori Short-term Bond Securities Investment Trust(Bond) ClassC-F 468,357 67,022 14,189 11,804 - 11,804 Woori Safe Plus General Type Private Investment Trust S-8(Bond) 115,781 4,508 1,899 1,763 - 1,763 WOORI TAERIM 1st Fund 4,047 185 - (13) - (13) Portone-Cape Fund No.1 2,344 26 - (129) - (129) KIWOOM WOORI Financial 1st Investment Fund 10,597 111 1 (222) - (222) DeepDive WOORI 2022-1 Financial Investment Fund 7,412 37 57 (103) - (103) Darwin Green Packaging Private Equity Fund 19,332 - 2,215 1,904 - 1,904 DS Power Semicon Private Equity Fund 14,230 44 1,185 937 - 937 Koreawide partners 2nd Private Equity Fund 77,039 2,038 3,020 1 - 1 Woori FirstValue Private Real Estate Fund No.2 67,005 62,357 3 (54) - (54) WooriG Real Infrastructure Blind General Type Private Placement Investment Trust 73,064 56 3,140 2,874 - 2,874 Woori BIG2 Plus Securities Investment Trust(Balanced Bond) 4,667 12 389 (636) - (636) Woori Together TDF 2025 8,513 16 1,287 (1,018) - (1,018) Woori Together TDF 2030 8,615 - 1,352 (1,108) - (1,108) WOORI Star50 feeder fund(H) 709 - 48 (480) - (480) Aarden Woori Apparel 1st Private Equity Fund 20,750 89 8 (325) - (325) Woori Dyno 1st Private Equity Fund 10,212 43 200 (31) - (31) Australia Green Energy 1st PEF 122,634 14 30 (1,380) - (1,380) Godo Kaisha Oceanos 1 63,741 45,358 2,942 176 - 176 Woori Zip 1 48,309 34,346 2,085 (215) - (215) Woori Zip 2 68,388 48,927 3,069 (198) - (198) Force TEC Co., Ltd. 10,489 24,804 25,182 (2,664) - (2,664) KUM HWA Co., Ltd. 4 159 - (8) - (8) Jinmyung Plus Co.,Ltd. 696 649 177 (9) - (9) WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 123 - December 31, 2022 Assets Liabilities Operating revenue Net income (loss) Other comprehensive income(loss) Total comprehensive income(loss) JC Assurance No.2 Private Equity Fund 122,015 3 - (929) - (929) Dream Company Growth no.1 PEF 28,351 50 1,695 1,506 - 1,506 HMS-Oriens 1st Fund 58,095 6 3,829 3,279 - 3,279 Woori G Senior Loan Private Placement Investment Trust No.1 378,145 23 18,584 17,496 - 17,496 Genesis Eco No.1 Private Equity Fund 38,700 5 48 (593) - (593) Paratus Woori Material Component Equipment joint venture company 58,311 617 7 (812) - (812) Midas No. 8 Private Equity Joint Venture Company 65,936 242 1,928 977 - 977 Orchestra Private Equity Fund IV 34,427 - 1,580 878 - 878 Synaptic Green No.1 PEF 37,017 - 4 (983) - (983) IGEN2023No. 1 Private Equity Fund 32,362 122 3,166 2,616 - 2,616 PCC-Woori LP Secondary Fund 33,591 168 6,127 1,152 - 1,152 Woori-Q Corporate Restructuring Private Equity Fund 75,973 418 3,019 (4,696) - (4,696) Woori-Shinyoung Growth-Cap Private Equity Fund I 123,824 312 41,780 40,544 - 40,544 (*1) It is scheduled to be dissolved because of liquidation for the year ended December 31, 2021. (*2) The amount is after reflecting the fair value adjustment that occurred when acquiring the shares and the adjustments that occurred by difference of accounting policies with the Group. (4) The entities that the Group has not applied equity method of accounting although the Group’s ownership interest is more than 20% as of December 31, 2023 and 2022 are as follows: December 31, 2023 Associate (*) Number of shares owned Ownership (%) CL Tech Co., Ltd. 10,191 28.6 (*) Although the Group’s ownership interest of the entity is more than 20%, the Group does not have significant influence over the entity since it is going through work-out process under receivership, accordingly it is excluded from the investment in joint ventures and associates. December 31, 2022 Associate (*) Number of shares owned Ownership (%) CL Tech Co., Ltd. 10,191 28.6 (*) Although the Group’s ownership interest of the entity is more than 20%, the Group does not have significant influence over the entity since it is going through work-out process under receivership, accordingly it is excluded from the investment in joint ventures and associates. WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 124 - (5) As of December 31, 2023 and 2022, the reconciliations from the net assets of the associates to the carrying amount of the shares of the investment in joint ventures and associates are as follows (Unit: Korean Won in millions except for ownership): December 31, 2023 Total net asset Ownership (%) Ownership portion of net assets Basis difference Impairment Intercompany transaction Book value W Service Networks Co., Ltd. 4,391 4.9 216 - - - 216 Korea Credit Bureau Co., Ltd. 62,408 9.9 6,186 247 - - 6,433 Korea Finance Security Co., Ltd. 21,898 15.0 3,285 - - - 3,285 K BANK Co., Ltd. (*) 1,893,785 12.6 238,158 21,894 - - 260,052 Partner One Value Up I Private Equity Fund 13,889 23.3 3,230 - - - 3,230 IBK KIP Seongjang Dideemdol 1st Private Investment Limited Partnership 41,228 20.0 8,247 - - - 8,247 Crevisse Raim Impact 1st Startup Venture Specialist Private Equity Fund 15,654 25.0 3,914 - - 523 4,437 LOTTE CARD Co., Ltd. (*) 2,936,964 20.0 587,392 - - - 587,392 Union Technology Finance Investment Association 41,310 29.7 12,270 - - - 12,270 Dicustody Co., Ltd. 92 1.0 1 - - - 1 Orient Shipyard Co., Ltd. (16,517) 22.7 (3,754) - - 3,754 - Joongang Network Solution Co.,Ltd. (1,651) 25.3 (419) - - 507 88 Win Mortgage Co.,LTd. 2,321 4.5 105 - - - 105 Together-Korea Government Private Pool Private Securities Investment Trust No. 3 10,542 100.0 10,540 - - - 10,540 BTS 2nd Private Equity Fund 24,193 20.0 4,838 - - - 4,838 STASSETS FUND III 29,702 28.3 8,406 - - - 8,406 SF CREDIT PARTNERS, LLC 123,161 10.0 12,316 - - 529 12,845 Rea Company (1,488) 24.5 (365) - - 365 - ARAM CMC Co.,Ltd. 184 20.0 37 - - (37) - Japanese Hotel Real Estate Private Equity Fund No.2 13,529 19.9 2,688 - - - 2,688 Woori Seoul Beltway Private Special Asset Fund No.1 50,360 25.0 12,590 - - - 12,590 Woori General Private Securities Investment Trust(Bond) No.1 206,746 25.0 51,686 - - - 51,686 Woori Short-term Bond Securities Investment Trust(Bond) ClassC-F 701,914 15.0 105,564 - - - 105,564 Woori Safe Plus General Type Private Investment Trust S- 8(Bond) 113,407 9.1 10,330 - - - 10,330 Woori General Private Securities Investment Trust(Bond) No.2 113,040 27.3 30,829 - - - 30,829 Woori Smart General Private Equity Investment Trust 1(bond) 143,973 28.6 41,135 - - - 41,135 Woori General Private Securities Investment Trust(Bond) No.3 184,330 27.8 51,205 - - - 51,205 Woori Asset Global Partnership Fund No.5 38,256 57.7 22,071 - - - 22,071 WOORI TAERIM 1st Fund 3,862 25.6 988 - - - 988 WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 125 - December 31, 2023 Total net asset Ownership (%) Ownership portion of net assets Basis difference Impairment Intercompany transaction Book value Portone-Cape Fund No.1 2,224 20.0 445 - - - 445 DeepDive WOORI 2021-1 Financial Investment Fund 10,381 11.9 1,236 - - - 1,236 Darwin Green Packaging Private Equity Fund 19,390 20.4 3,957 - - - 3,957 Koreawide partners 2nd Private Equity Fund 72,133 26.7 19,235 - - - 19,235 Woori FirstValue Private Real Estate Fund No.2 4,667 12.0 560 - - - 560 WooriG Real Infrastructure Blind General Type Private Placement Investment Trust 114,817 0.1 55 - - - 55 Woori Together TDF 2030 11,894 28.0 3,324 - - - 3,324 Woori Together OCIO Target Return Feeder fund (Balance Bond) 50,837 20.4 10,376 - - - 10,376 Australia Green Energy 1st PEF 121,430 4.0 4,811 - - - 4,811 Aarden Woori Apparel 1st Private Equity Fund 28,129 0.5 133 - - - 133 Woori Dyno 1st Private Equity Fund 12,025 19.6 2,358 - - - 2,358 KTB-KORUS FUND 8,956 37.5 3,359 - - - 3,359 KTB China Platform Fund 85,895 18.7 16,059 - - - 16,059 KTBN Venture Fund No.7 79,871 20.1 16,044 - - - 16,044 KTBN Venture Fund No.8 11,551 21.7 2,511 - - - 2,511 KTBN Digital Contents Korea Fund No.9 18,658 30 5,597 - - - 5,597 KTBN Media Contents Fund 1,887 15 283 - - - 283 KTB China Synergy Fund 135,487 15.1 20,405 - - - 20,405 NAVER-KTB Audio Contents Fund 28,767 1 288 - - - 288 KTBN Venture Fund No.13 72,206 19.6 14,158 - - - 14,158 KTBN Future Contents Fund 34,210 13.3 4,561 - - - 4,561 KTBN Venture Fund No.16 180,975 10.3 18,561 - - - 18,561 KTBN Venture Fund No.18 265,911 10.1 26,970 - - - 26,970 KB-KTB Technology Venture Fund 41,800 18.2 7,600 - - - 7,600 WOORI 2022 Scaleup Venture Fund 67,800 20 13,578 - - - 13,578 WOORI 2022 Start-up Venture Fund 8,081 30.1 2,433 - - - 2,433 KTB-NHN China Private Equity Fund 9 33.3 3 - - - 3 KTBN GI Private Equity Fund 12,346 5 617 - - - 617 Chirochem 357 28.6 102 - - - 102 Godo Kaisha Oceanos 1 16,687 47.8 7,978 - - - 7,978 Woori Zip 1 12,746 62.4 7,629 - - - 7,629 Woori Zip 2 17,630 62.8 10,695 - - - 10,695 KG Fashion Co., Ltd. (463) 20.8 (96) - - 96 - KUM HWA Co., Ltd. (163) 20.1 (33) - - 33 - Jinmyung Plus Co., Ltd. 65 21.3 14 - - - 14 JC Assurance No.2 Private Equity Fund 121,588 23.5 28,610 - (28,610) - - Dream Company Growth no.1 PEF 28,111 27.8 7,809 - - - 7,809 HMS-Oriens 1st Fund 61,497 22.8 14,030 - - - 14,030 Woori G Senior Loan Private Placement Investment Trust No.1 349,132 21.7 75,590 - - - 75,590 WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 126 - December 31, 2023 Total net asset Ownership (%) Ownership portion of net assets Basis difference Impairment Intercompany transaction Book value Genesis Eco No.1 Private Equity Fund 37,750 29.0 10,942 - - - 10,942 Paratus Woori Material Component Equipment joint venture company 56,788 29.9 16,979 - - - 16,979 Midas No. 8 Private Equity Joint Venture Company 64,821 28.5 18,465 - - - 18,465 Orchestra Private Equity Fund IV 33,919 28.2 9,555 - - - 9,555 Synaptic Green No.1 PEF 36,150 21.1 7,611 - - - 7,611 IGEN2022No. 1 Private Equity Fund 32,131 24.8 7,983 - - - 7,983 PCC-Woori LP Secondary Fund 27,105 38.9 10,530 - - - 10,530 Synaptic Future Growth Private Equity Fund 1 29,748 23.8 7,069 - - - 7,069 Woori-Q Corporate Restructuring Private Equity Fund 62,809 32.4 20,283 - - - 20,283 Woori-Shinyoung Growth-Cap Private Equity Fund I 95,743 35.0 33,481 - - - 33,481 NH Woori Newdeal Growth Alpha Private Equity Fund 1 98,627 32.7 32,987 - - - 32,987 Woori BIG2 Plus Securities Investment Trust(Balanced Bond) 16,625 14.1 2,543 - - - 2,543 Woori 25-09 Corporate Bond (AA- or higher) Active ETF 101,701 29.3 29,821 - - - 29,821 Woori Short Term Government and Special Bank Bond Active ETF 58,973 20.8 12,286 - - - 12,286 (*) The net asset equity amount is after the debt-for-equity swap, non-controlling etc. WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 127 - December 31, 2022 Total net asset Ownership (%) Ownership portion of net assets Basis difference Impairment Intercompany transaction Book value W Service Networks Co., Ltd. 4,227 4.9 209 - - (1) 208 Korea Credit Bureau Co., Ltd. 55,100 9.9 5,462 246 - 1 5,709 Korea Finance Security Co., Ltd. 15,828 15.0 2,374 - - - 2,374 Woori Growth Partnerships New Technology Private Equity Fund 47,185 23.1 10,889 - - - 10,889 2016KIF-IMM Woori Bank Technology Venture Fund 47,370 20.0 9,474 - - - 9,474 K BANK Co., Ltd. (*) 1,796,269 12.6 225,894 21,894 - 1 247,789 Woori Bank-Company K Korea Movie Asset Fund 957 25.0 239 - - - 239 Partner One Value Up Ist Private Equity Fund 18,395 23.3 4,278 - - - 4,278 IBK KIP Seongjang Dideemdol 1st Private Investment Limited Partnership 51,419 20.0 10,284 - - 1 10,285 Crevisse Raim Impact 1st Startup Venture Specialist Private Equity Fund 15,716 25.0 3,929 - - 426 4,355 LOTTE CARD Co., Ltd. (*) 2,570,656 20.0 514,131 - - - 514,131 Together-Korea Government Private Pool Private Securities Investment Trust No.3 10,245 100.0 10,244 - - (1) 10,243 Union Technology Finance Investment Association 48,692 29.7 14,463 - - (1) 14,462 Dicustody Co., Ltd. 95 1.0 1 - - - 1 Orient Shipyard Co., Ltd. (16,393) 22.7 (3,721) - - 3,721 - BTS 2nd Private Equity Fund 14,405 20.0 2,881 - - - 2,881 STASSETS FUND III 4,347 28.3 1,230 - - - 1,230 Japanese Hotel Real Estate Private Equity Fund No.2 14,374 19.9 2,855 - - - 2,855 Woori Seoul Beltway Private Special Asset Fund No.1 39,495 25.0 9,874 - - - 9,874 Woori Short-term Bond Securities Investment Trust (Bond) ClassC-F 401,335 27.9 112,025 - - - 112,025 Woori Safe Plus General Type Private Investment Trust S- 8(Bond) 111,273 9.2 10,182 - - - 10,182 WOORI TAERIM 1st Fund 3,862 25.6 988 - - - 988 Portone-Cape Fund No.1 2,318 20.0 464 - - - 464 KIWOOM WOORI Financial 1st Investment Fund 10,486 9.1 953 - - - 953 DeepDive WOORI 2022-1 Financial Investment Fund 7,375 11.9 878 - - - 878 Darwin Green Packaging Private Equity Fund 19,332 20.4 3,945 - - - 3,945 DS Power Semicon Private Equity Fund 14,186 21.0 2,976 - - - 2,976 Koreawide partners 2nd Private Equity Fund 75,001 26.7 20,000 - - - 20,000 Woori FirstValue Private Real Estate Fund No.2 4,648 12.0 558 - - - 558 Woori G Real Infrastructure Blind General Type Private Placement Investment Trust 73,008 0.1 102 - - - 102 WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 128 - December 31, 2022 Total net asset Ownership (%) Ownership portion of net assets Basis difference Impairment Intercompany transaction Book value Woori BIG2 Plus Securities Investment Trust(Balanced Bond) 4,655 23.1 1,074 - - - 1,074 Woori Together TDF 2025 8,497 23.6 1,990 - - - 1,990 Woori Together TDF 2030 8,615 23.8 2,033 - - - 2,033 WOORI Star50 feeder fund(H) 709 17.9 126 - - - 126 Aarden Woori Apparel 1st Private Equity Fund 20,661 0.5 97 - - - 97 Woori Dyno 1st Private Equity Fund 10,169 19.6 1,994 - - - 1,994 Australia Green Energy 1st PEF 122,620 4.0 4,858 - - - 4,858 Godo Kaisha Oceanos 1 18,383 47.8 8,788 - - - 8,788 Woori Zip 1 13,963 64.0 8,690 - - - 8,690 Woori Zip 2 19,461 64.0 12,180 - - - 12,180 Force TEC (14,315) 24.5 (3,513) - - 3,513 - KUM HWA Co., Ltd. (155) 20.1 (31) - - 31 - Jinmyung Plus Co.,Ltd. 47 21.3 10 - - - 10 JC Assurance No.2 Private Equity Fund 122,012 23.5 17,728 - (17,728) - - Dream Company Growth no.1 PEF 28,301 27.8 7,861 - - - 7,861 HMS-Oriens 1st Fund 58,089 22.8 13,252 - - - 13,252 Woori G Senior Loan General Type Private Investment Trust No.1 378,122 21.7 81,861 - - - 81,861 Genesis Eco No.1 Private Equity Fund 38,695 29.0 11,216 - - - 11,216 Paratus Woori Material Component Equipment joint venture company 57,694 29.9 17,250 - - - 17,250 Midas No. 8 Private Equity Joint Venture Company 65,694 28.5 18,713 - - - 18,713 Orchestra Private Equity Fund IV 34,427 28.2 9,698 - - - 9,698 Synaptic Green No.1 PEF 37,017 21.1 7,793 - - - 7,793 IGEN2023No. 1 Private Equity Fund 32,240 24.8 8,010 - - - 8,010 PCC-Woori LP Secondary Fund 33,423 38.8 12,984 - - - 12,984 Woori-Q Corporate Restructuring Private Equity Fund 75,555 35.6 27,536 - - - 27,536 Woori-Shinyoung Growth-Cap Private Equity Fund I 123,512 35.0 43,274 - - - 43,274 (*) The net asset equity amount is after the debt-for-equity swap, non-controlling etc. WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 129 - 14. INVESTMENT PROPERTIES (1) Details of investment properties are as follows (Unit: Korean Won in millions): December 31, 2023 December 31, 2022 Acquisition cost 510,990 418,775 Accumulated depreciation (38,136) (30,982) Accumulated impairment losses (86) (86) Net carrying value 472,768 387,707 (2) Changes in investment properties are as follows (Unit: Korean Won in millions): For the years ended December 31 2023 2022 Beginning balance 387,707 389,495 Acquisition 99,234 - Disposal - (1,206) Depreciation (5,398) (3,925) Transfer (2,098) 7,153 Foreign currencies translation adjustments (6,677) (3,810) Ending balance 472,768 387,707 (3) Fair value of investment properties amounted to 802,109 million won and 647,072 million won as of December 31, 2023 and 2022, respectively. The fair value of investment properties has been assessed on the basis of recent similar real estate market price and officially assessed land price in the area of the investment properties, is classified as level 3 on the fair value hierarchy. (4) Rental fee earned from investment properties is amounting to 26,477 million won and 22,798 million won for the years ended December 31, 2023 and 2022, respectively. Operating expenses directly related to the investment properties where rental fee was earned is amounting to 5,568 million won and 4,093 million won. (5) The lease payments expected to be received in the future under lease contracts relating to investment properties as of December 31, 2023 and 2022 are as follows (Unit: Korean Won in millions): December 31, 2023 December 31, 2022 Lease payments: Within a year 14,784 12,368 More than 1 year and within 2 years 8,214 8,481 More than 2 years and within 3 years 3,744 5,320 More than 3 years and within 4 years 3,172 3,201 More than 4 years and within 5 years 2,994 2,634 More than 5 years 2,944 2,568 Total 35,852 34,572 WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 130 - 15. PROPERTY, PLANT AND EQUIPMENT (1) Details of Property, Plant and Equipment as of December 31, 2023 and 2022 are as follows (Unit: Korean Won in millions): December 31, 2023 Land Building Equipment and vehicles Leasehold improvement Construction in progress Structures Total Property, Plant and Equipment (owned) 1,709,712 719,738 265,064 61,369 37,194 - 2,793,077 Right-of-use asset - 362,702 20,980 - - - 383,682 Carrying value 1,709,712 1,082,440 286,044 61,369 37,194 - 3,176,759 December 31, 2022 Land Building Equipment and vehicles Leasehold improvement Construction in progress Structures Total Property, Plant and Equipment (owned) 1,695,357 730,676 261,278 58,352 32,184 - 2,777,847 Right-of-use asset - 349,494 15,589 - - - 365,083 Carrying value 1,695,357 1,080,170 276,867 58,352 32,184 - 3,142,930 (2) Details of Property, Plant and Equipment (owned) as of December 31, 2023 and 2022 are as follows (Unit: Korean Won in millions): December 31, 2023 Land Building Equipment and vehicles Leasehold improvement Construction in progress Structures Total Acquisition cost 1,710,372 1,098,682 1,229,740 486,763 37,194 20 4,562,771 Accumulated depreciation - (378,944) (964,676) (425,394) - (20) (1,769,034) Accumulated impairment losses (660) - - - - - (660) Net carrying value 1,709,712 719,738 265,064 61,369 37,194 - 2,793,077 December 31, 2022 Land Building Equipment and vehicles Leasehold improvement Construction in progress Structures Total Acquisition cost 1,696,017 1,078,385 1,179,928 470,513 32,184 20 4,457,047 Accumulated depreciation - (347,709) (918,650) (412,161) - (20) (1,678,540) Accumulated impairment losses (660) - - - - - (660) Net carrying value 1,695,357 730,676 261,278 58,352 32,184 - 2,777,847 WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 131 - (3) Details of changes in Property, Plant and Equipment(owned) are as follows (Unit: Korean Won in millions): For the year ended December 31, 2023 Land Building Equipment and vehicles Leasehold improvement Construction in progress Structures Total Beginning balance 1,695,357 730,676 261,278 58,352 32,184 - 2,777,847 Acquisitions 43 18,107 112,908 24,874 8,790 - 164,722 Disposals (367) (530) (13,630) (1,017) (3,600) - (19,144) Depreciation - (33,318) (96,684) (21,062) - - (151,064) Classification of assets held for sale (936) (1,568) - - - - (2,504) Transfer 5,445 (3,347) - - - - 2,098 Foreign currencies translation adjustments 638 322 296 186 (68) - 1,374 Business combination 9,530 9,530 318 - - - 19,378 Others 2 (134) 578 36 (112) - 370 Ending balance 1,709,712 719,738 265,064 61,369 37,194 - 2,793,077 For the year ended December 31, 2022 Land Building Equipment and vehicles Leasehold improvement Construction in progress Structures Total Beginning balance 1,719,325 756,964 258,361 51,354 3,171 1 2,789,176 Acquisitions 24 14,524 98,620 28,178 31,810 - 173,156 Disposals (20,024) (788) (1,003) (656) - - (22,471) Depreciation - (32,290) (97,600) (21,185) - (1) (151,076) Classification of assets held for sale (6,405) (6,704) - - - - (13,109) Transfer (3,040) (4,113) - - - - (7,153) Foreign currencies translation adjustments (855) (428) 392 549 225 - (117) Business combination 5,917 3,523 2,586 - - - 12,026 Others 415 (12) (78) 112 (3,022) - (2,585) Ending balance 1,695,357 730,676 261,278 58,352 32,184 - 2,777,847 (4) Details of right-of-use assets as of December 31, 2023 and 2022 are as follows (Unit: Korean Won in millions): December 31, 2023 Building Equipment and vehicles Total Acquisition cost 735,396 40,389 775,785 Accumulated depreciation (372,694) (19,409) (392,103) Net carrying value 362,702 20,980 383,682 December 31, 2022 Building Equipment and vehicles Total Acquisition cost 643,484 32,700 676,184 Accumulated depreciation (293,990) (17,111) (311,101) Net carrying value 349,494 15,589 365,083 WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 132 - (5) Details of changes in right-of-use assets for the years ended December 31, 2023 and 2022 are as follows (Unit: Korean Won in millions): For the year ended December 31, 2023 Building Equipment and vehicles Total Beginning balance 349,494 15,589 365,083 New contracts 192,111 18,699 210,810 Changes in contract 25,570 138 25,708 Termination (15,340) (1,647) (16,987) Depreciation (201,232) (12,133) (213,365) Business combination 675 271 946 Others 11,424 63 11,487 Ending balance 362,702 20,980 383,682 For the year ended December 31, 2022 Building Equipment and vehicles Total Beginning balance 367,480 18,064 385,544 New contracts 225,396 9,819 235,215 Changes in contract 3,514 (26) 3,488 Termination (43,597) (870) (44,467) Depreciation (211,175) (11,406) (222,581) Business combination 819 - 819 Others 7,057 8 7,065 Ending balance 349,494 15,589 365,083 16. INTANGIBLE ASSETS (1) Details of intangible assets are as follows (Unit: Korean Won in millions): December 31, 2023 Goodwill Industrial property rights Development cost Other intangible assets Membership deposit Construction in progress Total Acquisition cost 445,093 2,292 859,678 1,388,397 50,857 8,142 2,754,459 Accumulated amortization - (1,783) (617,587) (1,101,688) - - (1,721,058) Accumulated impairment losses - - - (33,553) (3,006) - (36,559) Net carrying value 445,093 509 242,091 253,156 47,851 8,142 996,842 December 31, 2022 Goodwill Industrial property rights Development cost Other intangible assets Membership deposit Construction in progress Total Acquisition cost 397,527 2,219 754,031 1,244,516 46,231 3,027 2,447,551 Accumulated amortization - (1,576) (541,404) (1,018,591) - - (1,561,571) Accumulated impairment losses - - - (33,552) (3,314) - (36,866) Net carrying value 397,527 643 212,627 192,373 42,917 3,027 849,114 WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 133 - (2) Details of changes in intangible assets are as follows (Unit: Korean Won in millions): For the year ended December 31, 2023 Goodwill Industrial property rights Development cost Other intangible assets Membership deposit Construction in progress Total Beginning balance 397,527 643 212,627 192,373 42,917 3,027 849,114 Acquisitions - 72 105,596 125,509 4,000 7,612 242,789 Disposal - - - (1,028) (1,290) - (2,318) Amortization (*) - (206) (76,192) (84,556) - - (160,954) Reversal of impairment losses - - - - 37 - 37 Transfer - - 61 650 (392) (350) (31) Business combination 41,527 - - 18,882 2,565 - 62,974 Foreign currencies translation adjustments 6,039 - (1) 854 4 (28) 6,868 Others - - - 472 10 (2,119) (1,637) Ending balance 445,093 509 242,091 253,156 47,851 8,142 996,842 (*) Amortization of other intangible assets amounting to 22,349 million won is included in other operating expenses. For the year ended December 31, 2022 Goodwill Industrial property rights Development cost Other intangible assets Membership deposit Construction in progress Total Beginning balance 345,449 723 207,708 193,182 37,607 717 785,386 Acquisitions - 162 91,992 62,073 6,571 2,421 163,219 Disposal - - - (2) (1,295) - (1,297) Amortization (*) - (242) (87,294) (75,299) - - (162,835) Impairment losses - - - - 88 - 88 Transfer - - 300 182 - (482) - Business combination 57,670 - - 7,795 - - 65,465 Foreign currencies translation adjustments (5,592) - (5) (865) (42) (53) (6,557) Others - - (74) 5,307 (12) 424 5,645 Ending balance 397,527 643 212,627 192,373 42,917 3,027 849,114 (*) Amortization of other intangible assets amounting to 14,664 million won is included in other operating expenses. (3) Goodwill 1) Details of allocated goodwill based on each cash-generating unit as of December 31, 2023 and 2022 are as follows (Unit: Korean won in million): Cash-generating unit (*1) December 31, 2023 December 31, 2022 Woori Asset Management Corp. 43,036 43,036 Woori Global Asset Management Co., Ltd. 2,030 2,030 Woori Asset Trust Co., Ltd. 141,780 141,780 Woori Venture Partners Co., Ltd. 41,527 - PT Bank Woori Saudara Indonesia 1906 Tbk (*2) 100,267 97,029 WOORI BANK (CAMBODIA) PLC (*3) 56,513 55,570 PT Woori Finance Indonesia Tbk.(*4) 53,097 51,382 Others 6,843 6,700 Total 445,093 397,527 (*1) Allocated to the cash-generating unit that will benefit from the synergy effect of the business combination, and the cash-generating unit is generally comprised of the operating segment or sub-sectors. (*2) The Group has acquired Saudara Bank to expand retail sales in Indonesia, and recognized the goodwill as it is expected to strengthen the competitiveness by securing a local sales network in Indonesia. (*3) The Group has acquired VisionFund Cambodia to expand retail sales in Cambodia, and recognized goodwill based on the economies of scale and acquired customer base. WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 134 - (*4) The Group has acquired PT Batavia Prosperindo Finance Tbk to expand installment finance business in Indonesia, and recognized the goodwill as it is expected to strengthen the competitiveness and existing customer relationships by securing sales network of used cars in Indonesia. 2) Impairment test The recoverable amount of the cash-generating unit is measured at larger amount between the fair value less costs to sell and the value to use. The net fair value is calculated by deducting costs of disposal from the amount received from the sale of the cash-generating unit in an arm’s length transaction between the parties with reasonable judgment and willingness to negotiate. In case of difficulty in measuring this amount, the sale amount of a similar cash-generating unit in the past market is calculated by reflecting the characteristics of the cash- generating unit. If reliable information related to fair value less costs to sell is not available, value in use is considered as recoverable amount. Value in use is the present value of future cash flows expected to be generated by the cash-generating unit. Future cash flows are estimated based on the latest financial budget approved by the management, with an estimated period of up to five years. The Group applied 1.0% - 4.3% growth rate to estimate future cash flow for the period over five years. The main assumptions used to estimate cash flows are about the size of the market and the share of the group. The appropriate discount rate for discounting future cash flows is the pre-tax discount rate, including assumptions about risk-free interest rates, market risk premium, and systemic risk of cash-generating units. The impairment test, which compares the carrying amount and recoverable amount of the cash- generating unit to which goodwill has been allocated, is conducted every year and every time an impairment sign occurs. Category Woori Asset Trust Co., Ltd. Woori Asset Management Corp.(*) Woori Venture Partners Co., Ltd. PT Bank Woori Saudara Indonesia 1906 Tbk WOORI BANK (CAMBODIA) PLC PT Woori Finance IndonesiaTbk Discount rate (%). 16.61 16.44 16.93 11.39 17.72 15.33 Terminal growth rate (%) 1.0 1.0 1.0 1.0 1.0 4.3 Recoverable amount. 439,760 186,709 275,795 979,387 586,446 159,255 Carrying amount 414,455 160,596 221,248 740,558 509,730 120,355 (*)The Group conducted a consolidated impairment test on the goodwill of Woori Asset Management and Woori Global Asset Management, which are scheduled to merge in January 2024. As a result of the impairment test on goodwill, it is determined that the carrying amount of the cash- generating unit to which the goodwill has been allocated will not exceed the recoverable amount. 3) Sensitivity analysis The sensitivity of the fair value measurement to changes in significant but unobservable inputs used in measuring fair value is as follows (Unit: Korean Won in millions): Category Woori Asset Trust Co., Ltd. Woori Asset Management Corp.(*) Woori Venture Partners Co., Ltd. PT Bank Woori Saudara Indonesia 1906 Tbk WOORI BANK (CAMBODIA) PLC PT Woori Finance Indonesia Tbk Discount rate (%). Increase by 1.0% point (33,658) (7,931) (32,715) (95,630) (47,185) (14,150) Decrease by 1.0% point 40,101 9,343 38,927 116,564 53,812 17,719 Terminal growth rate (%) Increase by 1.0% point 23,853 5,217 24,520 47,933 9,762 13,470 Decrease by 1.0% point (20,274) (4,451) (20,874) (39,513) (8,659) (10,734) WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 135 - 17. ASSETS HELD FOR SALE Assets held for sale are as follows (Unit: Korean Won in millions): Assets (*) December 31, 2023 December 31, 2022 Property, Plant and Equipment 11,573 9,589 Others 8,772 4,183 Total 20,345 13,772 (*) The Group classifies assets as held for sale that are highly likely to be sold within one year from December 31, 2023 and 2022. The Group measured assets held for sale at the lower of their net fair value or carrying amount. The Group has decided to sell some of the Property, Plant and Equipment through internal consultation during the current year and classified the property as non-current assets held for sale. The assets are expected to be sold within 12 months, and those that were scheduled to be sold at the end of the prior year have been sold and removed. On the other hand, other assets that are expected to be sold as of the end of the current year are classified as assets that are expected to be sold within one year due to the possibility of being sold as buildings and land acquired through auction. WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 136 - 18. ASSETS SUBJECT TO LIEN AND ASSETS ACQUIRED THROUGH FORECLOSURES (1) Assets subjected to lien are as follows (Unit: Korean Won in millions): December 31, 2023 Collateral given to Amount Reason for collateral Financial assets at FVTPL Korean treasury and government bonds, etc. Mirae Asset Global Investments Co., Ltd. 238,461 Related to bonds sold under repurchase agreements (*1) Korean treasury and government bonds, etc. Korea Securities Depository 675,815 Securities borrowing collateral Korean treasury and government bonds, etc. SHINHAN SECURITIES CO, etc. 6,534 Future trading collateral Korean financial institutions’ debt securities, etc. Korea Exchange Co., Ltd etc. 385,394 Variable margin deposit for CSA, etc. Korean capital contributions, etc. Korea Software Financial Cooperative 107 Bid guarantee, etc. Financial assets at FVTOCI Korean treasury and government bonds Korea Securities Depository 73,846 Related to bonds sold under repurchase agreements (*1) Korean financial institutions’ debt securities, etc. The BOK, etc. 8,182,907 Settlement risk, etc. Debt securities in foreign currencies Korea Investment & Securities, etc. 955,126 Substitute securities, etc. Debt securities in foreign currencies Postal Savings Bank of China 482,737 Related to bonds sold under repurchase agreements (*1) Securities at amortized cost Korean treasury and government bonds The BOK, etc. 10,380,306 Settlement risk, etc. Debt securities in foreign currencies NATIXIS 48,368 Related to bonds sold under repurchase agreements (*1) Debt securities in foreign currencies FEDERAL RESERVE BANK 23,180 Related to the borrowing limit Loan at amortized cost and other financial assets Other due from banks in local currency MORGAN STANLEY BANK INTL, SEL, etc. 26,854 Variable margin deposit for CSA, etc. Other due from banks in foreign currency Korea Investment & Securities, etc. 765,330 Overseas futures option deposit, etc. Mortgage loan Public offering 1,242,963 Related to covered bonds Property, Plant and Equipment Land and building Gakorea Co., Ltd , etc. 1,808 Right to collateral and others (*2) Investment properties Land and building Gakorea Co., Ltd. 5,211 Right to collateral (*2) Total 23,494,947 (*1) The Group has the agreements to repurchase the sold assets at the predetermined price or the price that includes the rate of return and to provide the guarantee on the assets. The transferee has the right to sell or to provide as guarantee. Therefore, the Group does not derecognize the assets, but recognizes the relevant amounts as liability (bonds sold under repurchase agreements). The asset is equivalent to a mortgage-backed debt security. (*2) The maximum pledge amount is 339 million Won. WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 137 - December 31, 2022 Collateral given to Amount Reason for collateral Financial assets at FVTPL Korean treasury and government bonds, etc. KOREA SECURITIES FINANCE CORPORATION, etc. 198,377 Related to bonds sold under repurchase agreements (*1) Korean treasury and government bonds, etc. Korea Securities Depository 659,050 Securities borrowing collateral Korean treasury and government bonds, etc. SHINHAN SECURITIES CO, etc. 6,939 Future trading collateral Korean financial institutions’ debt securities, etc. SC FIRST BANK KOREA, SEOUL, etc. 245,876 Variable margin deposit for CSA, etc. Korean financial institutions’ debt securities, etc. SHINHAN ASSET MANAGEMENT, etc. 16,200 Related to bonds sold under repurchase agreements (*1) Korean capital contributions, etc. Korea Software Financial Cooperative 104 Bid guarantee, etc. Financial assets at FVTOCI Korean treasury and government bonds Korea Securities Depository 460 Related to bonds sold under repurchase agreements (*1) Korean financial institutions’ debt securities, etc. The BOK, etc. 6,394,890 Settlement risk, etc. Debt securities in foreign currencies BNP-PARIBAS, etc. 1,060,120 Variable margin deposit for CSA, etc. Debt securities in foreign currencies SC BANK, H.K, etc. 582,738 Related to bonds sold under repurchase agreements (*1) Securities at amortized cost Korean treasury and government bonds Korea Securities Depository 1,100,351 Related to bonds sold under repurchase agreements (*1) Korean treasury and government bonds The BOK, etc. 10,820,136 Settlement risk, etc. Debt securities in foreign currencies NATIXIS, etc. 70,949 Related to bonds sold under repurchase agreements (*1) Debt securities in foreign currencies FHLB ADVANCE, etc. 10,570 Related to the borrowing limit Loan at amortized cost and other financial assets Due from banks in local currency Daishin AMC Co.,Ltd. and others 1,500 Right of pledge Other due from banks in local currency The Korea Exchange, etc. 133,539 Margin deposit for CCP Other due from banks in foreign currency Korea Investment & Securities, etc. 1,142,784 Overseas futures option deposit, etc. Mortgage loan Public offering 1,892,723 Related to covered bonds Property, Plant and Equipment Land and building Gakorea Co., Ltd , etc. 1,851 Right to collateral and others (*2) Investment properties Land and building Gakorea Co., Ltd., etc. 5,365 Right to collateral and others (*2) Total 24,344,522 (*1) The Group has the agreements to repurchase the sold assets at the predetermined price or the price that includes the rate of return and to provide the guarantee on the assets. The transferee has the right to sell or to provide as guarantee. Therefore, the Group does not derecognize the assets, but recognizes the relevant amounts as liability (bonds sold under repurchase agreements). The asset is equivalent to a mortgage-backed debt security. (*2) The maximum pledge amount is 522 million Won. WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 138 - (2) As of December 31, 2023 and 2022 there is no asset acquired through foreclosures. December 31, 2023 December 31, 2022 Investment properties Land 6,404 6,404 Building 148 165 Sub-total 6,552 6,569 Other assets Land for non-business use 30,950 21,302 Building for non-business use (*1) 5,174 3,049 Movables for non-business use (*2) 111 165 Real estate assessment provision for non- business use (1,611) (1,176) Sub-total 34,624 23,340 Assets held for sale Land 2,393 2,351 Building 1,853 1,832 Sub-total 4,246 4,183 Total 45,422 34,092 (*1) The cumulative depreciation amount as of December 31, 2023 and 2022 is 1,471 million Won and 1,055 million Won, respectively. (*2) The cumulative depreciation amount as of December 31, 2023 and 2022 is 886 million Won and 882 million Won, respectively. (3) Securities loaned are as follows (Unit: Korean Won in millions): December 31, 2023 December 31, 2022 Loaned to Financial assets at FVTPL Korean treasury and government bonds 625,398 - Korea Securities Finance Corporation Financial assets at FVTOCI Korean treasury and government bonds 592,218 98,027 Korea Securities Depository Securities loaned are lending of specific securities to borrowers who agree to return the same amount of the same security at the end of lending period. As the Group does not derecognize these securities. (4) Collaterals held that can be disposed and re-subjected to lien regardless of defaults of counterparties Fair values of collaterals held that can be disposed and re-subjected to lien regardless of defaults of counterparties as of December 31, 2023 and 2022 are as follows (Unit: Korean Won in millions): December 31, 2023 Fair values of collaterals Fair values of collaterals were disposed or re- subjected to lien Securities 3,443,822 - December 31, 2022 Fair values of collaterals Fair values of collaterals were disposed or re- subjected to lien Securities 7,109,933 - WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 139 - 19. OTHER ASSETS Details of other assets are as follows (Unit: Korean Won in millions): December 31, 2023 December 31, 2022 Lease assets 3,306,464 2,593,578 Prepaid expenses 345,202 287,323 Advance payments 95,025 99,772 Non-operational assets 34,625 23,340 Others 60,471 57,539 Total 3,841,787 3,061,552 20. FINANCIAL LIABILITIES AT FVTPL (1) Financial liabilities at FVTPL are as follows (Unit: Korean Won in millions): December 31, 2023 December 31, 2022 Financial instruments at fair value through profit or loss measured at fair value 6,138,313 8,952,399 Total 6,138,313 8,952,399 (2) Financial liabilities at fair value through profit or loss measured at fair value are as follows (Unit: Korean Won in millions): December 31, 2023 December 31, 2022 Deposits Gold banking liabilities 39,524 35,161 Borrowings Securities sold 155,765 12,113 Derivative liabilities 5,943,024 8,905,125 Total 6,138,313 8,952,399 WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 140 - 21. DEPOSITS DUE TO CUSTOMERS Details of deposits due to customers by type are as follows (Unit: Korean Won in millions): December 31, 2023 December 31, 2022 Deposits in local currency: Deposits on demand 8,803,962 15,627,300 Deposits at termination 282,846,971 270,092,855 Mutual installment 21,602 22,995 Deposits on notes payables 4,119,801 3,675,596 Deposits on CMA 95,237 60,079 Certificate of deposits 14,767,307 5,255,889 Other deposits 1,117,673 1,196,486 Sub-total 311,772,553 295,931,200 Deposits in foreign currencies: Deposits in foreign currencies 46,196,650 46,263,943 Present value discount (184,906) (92,352) Customers' deposits for beneficiary - 2,418 Total 357,784,297 342,105,209 22. BORROWINGS AND DEBENTURES (1) Details of borrowings are as follows (Unit: Korean Won in millions): December 31, 2023 Lenders Interest rate (%) Amount Borrowings in local currency: Borrowings from The BOK The BOK 2.0 1,565,444 Borrowings from government funds Small Enterprise and Market Service and others 0.0 ~ 3.4 1,996,579 Others The Korea Development Bank and others 0.0 ~ 6.7 11,206,471 Sub-total 14,768,494 Borrowings in foreign currencies: Borrowings in foreign currencies The Export-Import Bank of Korea and others 0.0 ~ 10.0 14,006,644 Bills sold Others 0.0 ~ 2.7 6,325 Call money Bank and others 4.1 ~ 6.6 1,115,923 Bonds sold under repurchase agreements Other financial institutions 1.0 ~ 11.7 1,119,991 Present value discount (30,631) Total 30,986,746 WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 141 - December 31, 2022 Lenders Interest rate (%) Amount Borrowings in local currency: Borrowings from The BOK The BOK 0.3 ~ 1.8 3,040,877 Borrowings from government funds Small Enterprise and Market Service and others 0.0 ~ 3.5 2,021,049 Others The Korea Development Bank and others 0.0 ~ 6.7 9,562,082 Sub-total 14,624,008 Borrowings in foreign currencies: Borrowings in foreign currencies The Export-Import Bank of Korea and others (0.1) ~ 10.6 11,161,294 Bills sold Others 0.0 ~ 2.4 7,308 Call money Bank and others 1.6 ~ 5.5 400,071 Bonds sold under repurchase agreements Other financial institutions 0.2 ~ 6.4 2,313,044 Present value discount (76,122) Total 28,429,603 (2) Details of debentures are as follows (Unit: Korean Won in millions): December 31, 2023 December 31, 2022 Interest rate (%) Amount Interest rate (%) Amount Face value of bond (*): Ordinary bonds 0.8 ~ 7.5 34,393,418 0.8 ~ 7.5 37,132,334 Subordinated bonds 1.9 ~ 5.1 5,241,848 1.9 ~ 5.1 5,835,325 Other bonds 1.6 ~ 17.0 1,667,895 0.8 ~ 17.0 1,271,364 Sub-total 41,303,161 44,239,023 Discounts on bonds (63,916) (40,537) Total 41,239,245 44,198,486 (*) Included debentures under fair value hedge amounting to 3,943,224 million won and 3,076,983 million won as of December 31, 2023 and 2022 respectively. Also, debentures under cash flow hedge amounting to 932,392 million won and 1,324,812 million won are included as of December 31, 2023 and 2022 respectively. WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 142 - 23. PROVISIONS (1) Details of provisions are as follows (Unit: Korean Won in millions): December 31, 2023 December 31, 2022 Asset retirement obligation 95,179 82,717 Provisions for guarantees (*1) 80,703 76,508 Provisions for unused loan commitments 135,335 106,033 Other provisions (*2) 494,814 280,607 Total 806,031 545,865 (*1) Provisions for guarantees includes provision for financial guarantee of 50,125 million won and 47,969 million won as of December 31, 2023 and 2022, respectively. (*2) Other provisions consist of provision for litigation, loss compensation and others. (2) Changes in provisions for guarantees and unused loan commitments are as follows (Unit: Korean Won in millions): 1) Provisions for guarantees For the year ended December 31, 2023 Stage1 Stage2 Stage3 Total Beginning balance 44,496 24,327 7,685 76,508 Transfer to 12-month expected credit loss 20,503 (20,503) - - Transfer to expected credit loss for the entire period (453) 453 - - Transfer to credit-impaired financial assets (4) (3) 7 - Provisions used - - - - Net provision (reversal) of unused amount 5,492 (1,470) (467) 3,555 Others (*) 644 (4) - 640 Ending balance 70,678 2,800 7,225 80,703 (*) Recognized as a result of new financial guarantee contract valued at initial fair value. For the year ended December 31, 2022 Stage1 Stage2 Stage3 Total Beginning balance 52,830 15,269 6,767 74,866 Transfer to 12-month expected credit loss 1,206 (1,206) - - Transfer to expected credit loss for the entire period (119) 119 - - Transfer to credit-impaired financial assets (3) (338) 341 - Provisions used - - - - Net provision (reversal) of unused amount (3,449) 10,483 577 7,611 Others (*) (5,969) - - (5,969) Ending balance 44,496 24,327 7,685 76,508 (*) Recognized as a result of new financial guarantee contract valued at initial fair value. WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 143 - 2) Provisions for unused loan commitment For the year ended December 31, 2023 Stage1 Stage2 Stage3 Total Beginning balance 67,640 38,188 205 106,033 Transfer to 12-month expected credit loss 19,492 (19,458) (34) - Transfer to expected credit loss for the entire period (3,631) 3,670 (39) - Transfer to credit-impaired financial assets (183) (263) 446 - Net provision (reversal) of unused amount 25,438 4,191 (346) 29,283 Others 19 - - 19 Ending balance 108,775 26,328 232 135,335 For the year ended December 31, 2022 Stage1 Stage2 Stage3 Total Beginning balance 67,440 44,536 320 112,296 Transfer to 12-month expected credit loss 14,349 (14,217) (132) - Transfer to expected credit loss for the entire period (2,619) 2,648 (29) - Transfer to credit-impaired financial assets (197) (306) 503 - Net provision (reversal) of unused amount (11,402) 5,527 (457) (6,332) Others 69 - - 69 Ending balance 67,640 38,188 205 106,033 (3) Changes in asset retirement obligation for the years ended December 31, 2023 and 2022, are as follows (Unit: Korean Won in millions): For the years ended December 31 2023 2022 Beginning balance 82,717 80,777 Provisions provided 6,979 4,082 Provisions used (1,542) (7,400) Reversal of provisions unused (1,202) (21) Unwinding of discount 2,412 909 Increase (decrease) of restoration expense,etc. 5,815 4,370 Ending balance 95,179 82,717 The amount of the asset retirement obligation is the present value of the best estimate of future expected expenditure to settle the obligation – arising from leased property as of December 31,2023, discounted by appropriate discount rate. The restoration cost is expected to occur by the end of each property’s lease period, and the Group has used average lease period of each category of leases terminated during the past years in order to rationally estimate the lease period. In addition, the Group used average amount of actual recovery cost for the past 3 years and the inflation rate for last year in order to estimate future recovery cost. WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 144 - (4) Changes in other provisions for the years ended December 31, 2023 and 2022, are as follows (Unit: Korean Won in millions): For the years ended December 31 2023 2022 Beginning balance 280,607 308,195 Provisions provided 265,574 36,284 Provisions used (30,974) (8,540) Reversal of provisions unused (*) (18,579) (54,893) Foreign currencies translation adjustments (1,844) (621) Others 30 182 Ending balance 494,814 280,607 (*) The Group provided Korean won settlement services for trading transaction settlement between Korea and Iran, investigated by U.S. prosecutors (federal prosecutors, New York state prosecutors) and New York State Department of Financial Services for violations of U.S. sanctions against Iran, Sudan, Syria and Cuba. In this regard, the Office of Foreign Assets Control concluded its investigation in December 2020 urging the bank’s attention without taking any additional sanctions, and New York State Department of Financial Services concluded its investigation in February 2022 without taking any additional sanctions. Meanwhile, in June 2022, the Group reversed the provision related to the investigation of the U.S. Prosecutors, which have not been completed yet, in consideration of the opinion of an independent legal expert that the probability of sanctions by the U.S. Prosecutors in this case is low. (5) Others 1) The Group recognized the estimated amount of compensation related to incomplete sales of Derivative Linked Fund (DLF) in 2019 and provisions for fines expected to be imposed by the Financial Services Commission as the best estimate of expenditure required to fulfill its current obligations at the end of the period. 2) The Group recognized provisions for estimated compensation amounts related to the prepayment arising from the delay in the redemption of funds before the prior fiscal year and the dispute settlement as the best estimate of the expenditure amounting to 180.2 billion won. In addition, The Group recognized provision amounting to 53.6 billion won for estimated compensation of expected customer loss related to delayed redemption of fund during the current period. WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 145 - 24. NET DEFINED BENEFIT LIABILITY(ASSET) The Group’s pension plan is based on the defined benefit retirement pension plan. Employees and directors with one or more years of service are entitled to receive a payment upon termination of their employment, based on their length of service and rate of salary at the time of termination. The assets of the plans are measured at their fair value at the end of reporting date. The plan liabilities are measured using the projected unit method, which takes account of projected earnings increases, using actuarial assumptions that give the best estimate of the future cash flows that will arise under the plan liabilities. The Group is exposed to various risks through defined benefit retirement pension plan, and the most significant risks are as follows: Volatility of asset The defined benefit obligation was estimated with an interest rate calculated based on blue chip corporate bonds earnings. A deficit may occur if the rate of return of plan assets falls short of the interest rate. Decrease in profitability of blue- chip bonds A decrease in profitability of blue-chip bonds will be offset by some increase in the value of debt securities that the employee benefit plan owns but will bring an increase in the defined benefit obligation. Risk of inflation Defined benefit obligations are related to inflation rate; the higher the inflation rate is, the higher the level of liabilities. Therefore, deficit occurs in the system if an inflation rate increases. (1) Details of net defined benefit liability are as follows (Unit: Korean Won in millions): December 31, 2023 December 31, 2022 Present value of defined benefit obligation 1,574,087 1,377,545 Fair value of plan assets (1,807,408) (1,661,623) Net defined benefit liabilities (*) (233,321) (284,078) (*) Net defined benefit assets of 232,321 million won as of December 31, 2023 are the subtracted amount of the net defined benefit liability of 6,939 million won from the net defined benefit assets of 240,260 million won. Net defined benefit assets of 284,078 million won as of December 31, 2022 are the subtracted amount of the net defined benefit assets of 319,280 million won from the net defined benefit liability of 35,202 million won. (2) Changes in the carrying value of defined benefit obligation are as follows (Unit: Korean Won in millions): For the years ended December 31 2023 2022 Beginning balance 1,377,545 1,618,098 Current service cost 132,302 166,741 Interest cost 72,683 48,238 Remeasurements Financial assumption 70,284 (356,344) Demographic assumptions - (9) Experience adjustments 13,926 (3,838) Retirement benefit paid (92,146) (92,914) Foreign currencies translation adjustments 80 (69) Others (587) (2,358) Ending balance 1,574,087 1,377,545 WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 146 - (3) Changes in the plan assets are as follows (Unit: Korean Won in millions): For the years ended December 31 2023 2022 Beginning balance 1,661,623 1,591,458 Interest income 91,550 49,916 Remeasurements (23,752) (18,095) Employer’s contributions 175,220 127,979 Retirement benefit paid (94,607) (87,472) Others (2,626) (2,163) Ending balance 1,807,408 1,661,623 (4) The fair value of the plan assets by composition is as follows as of December 31, 2023 and 2022. December 31, 2023 December 31, 2022 Cash and due from banks 1,807,408 1,661,623 Meanwhile, among plan assets, realized returns on plan assets amount to 67,798 million won and 31,821 million won for the years ended December 31, 2023 and 2022, respectively. The contribution expected to be paid in the next accounting year amounts to 128,665 million won. (5) Amounts related to the defined benefit plan that are recognized in the consolidated statements of comprehensive income are as follows (Unit: Korean Won in millions): For the years ended December 31 2023 2022 Current service cost 132,302 166,741 Net interest expense (18,867) (1,678) Cost recognized in net income 113,435 165,063 Remeasurements (*) 107,962 (342,096) Cost recognized in total comprehensive income 221,397 (177,033) (*) Amount before tax Retirement benefits related to defined contribution plans recognized as expenses are 6,217 million won, and 4,240 million won for the years ended December 31, 2023 and 2022, respectively. (6) Key actuarial assumptions used in net defined benefit liability measurement are as follows: December 31, 2023 December 31, 2022 Discount rate 4.25% ~ 5.15% 5.25% ~ 5.99% Future wage growth rate 2.24% ~ 5.79% 2.1% ~ 5.84% Mortality rate Issued by Korea Insurance Development Institute Issued by Korea Insurance Development Institute Retirement rate Experience rate for each employment classification Experience rate for each employment classification The weighted average maturity of defined benefit liability is a minimum of 5.01 to a maximum 10.76 years. WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 147 - (7) The sensitivity to actuarial assumptions used in the assessment of defined benefit obligation is as follows (Unit: Korean Won in millions): December 31, 2023 December 31, 2022 Discount rate Increase by 1% point (137,355) (146,319) Decrease by 1% point 158,691 170,529 Future wage growth rate Increase by 1% point 160,663 174,546 Decrease by 1% point (141,355) (153,712) 25. OTHER FINANCIAL LIABILITIES AND OTHER LIABILITIES Other financial liabilities and other liabilities are as follows (Unit: Korean Won in millions): December 31, 2023 December 31, 2022 Other financial liabilities: Accounts payable 10,188,192 6,001,858 Accrued expenses 4,339,314 3,219,349 Borrowings from trust accounts 5,207,791 3,475,118 Agency business revenue 271,946 213,845 Foreign exchange payables 887,817 822,446 Domestic exchange settlement credits 1,386,697 4,631,921 Lease liabilities 334,456 319,161 Other miscellaneous financial liabilities 3,520,039 4,148,621 Present value discount (21,247) (20,451) Sub-total 26,115,005 22,811,868 Other liabilities: Unearned income 390,455 351,633 Other miscellaneous liabilities 413,442 338,524 Sub-total 803,897 690,157 Total 26,918,902 23,502,025 WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 148 - 26. DERIVATIVES (1) Derivative assets and derivative liabilities are as follows (Unit: Korean Won in millions): Derivatives held for trading are classified into financial assets at FVTPL (Note 7) and financial liabilities at FVTPL (Note 20), and derivatives designated for hedging are presented as a separate line item in the consolidated statements of financial position. December 31, 2023 Assets Liabilities Nominal amount For cash flow hedge For fair value hedge For trading For cash flow hedge For fair value hedge For trading Interest rate: Futures 317,018 - - - - - - Forwards 3,960,000 - - 83,198 - - 169,527 Swaps 138,734,758 - 698 367,333 512 135,263 213,885 Purchase options 150,000 - - 6,556 - - - Written options 400,000 - - - - - 15,359 Currency: Futures 1,728 - - - - - - Forwards 97,713,561 - - 1,935,832 - - 885,870 Swaps 79,160,356 26,010 - 2,669,550 17,232 - 3,643,463 Purchase options 139,309 - - 1,500 - - - Written options 122,696 - - - - - 585 Equity: Futures 480,311 - - - - - - Forwards 137 - - 36 - - - Swaps 461,112 - - 126,028 - - 1,994 Purchase options 16,444,709 - - 608,296 - - - Written options 16,887,247 - - - - - 1,012,341 Total 354,972,942 26,010 698 5,798,329 17,744 135,263 5,943,024 December 31, 2022 Assets Liabilities Nominal amount For cash flow hedge For fair value hedge For trading For cash flow hedge For fair value hedge For trading Interest rate: Futures 42,545 - - - - - - Forwards 2,620,000 - - 249,356 - - - Swaps 136,550,518 2,041 - 440,540 - 193,831 474,158 Purchase options 170,000 - - 9,308 - - - Written options 310,000 - - - - - 16,752 Currency: Futures 51,136 - - - - - - Forwards 90,134,257 - - 3,083,082 - - 1,360,535 Swaps 97,197,309 35,745 - 3,105,901 9,080 - 5,500,970 Purchase options 487,852 - - 23,182 - - - Written options 570,982 - - - - - 7,929 Equity: Futures 958,589 - - - - - - Forwards 183 - - 100 - - - Swaps 568,835 - - 90,237 - - 673 Purchase options 29,801,478 - - 1,204,475 - - - Written options 29,874,836 - - - - - 1,544,108 Total 389,338,520 37,786 - 8,206,181 9,080 193,831 8,905,125 WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 149 - (2) Overview of the Group’s hedge accounting 1) Fair value hedge As of December 31, 2023, the Group has applied fair value hedge on fixed interest rate foreign currency denominated debentures amounting to 3,682,140 million Won, and foreign currency loans amounting to 261,084 million Won. The purpose of the hedging is to avoid fair value volatility risk of fixed interest rate foreign and local currency denominated debentures derived from fluctuations of market interest rate, and as such the Group entered into interest rate swap agreements designated as hedging instruments. Pursuant to the interest rate swap agreement, by swapping the calculated difference between the fixed interest rate and floating interest rate applied to the nominal value, the fair value fluctuation risk is hedged as the foreign currency denominated debentures fixed interest rate terms are converted to floating interest rate. Pursuant to the interest rate swap agreement, hedge ratio is determined by matching the nominal value of hedging instrument to the face value of the hedged item. In this hedging relationship, only the market interest rate fluctuation, which is the most significant part of the fair value change of the hedged item, is designated as the hedged risk, and other risk factors including credit risk are not included in the hedged risk. Therefore, the ineffective portion of the hedge could arise from fluctuations in the timing of the cash flow of the hedged item, price margin set by counterparty of hedging instrument, and unilateral change in credit risk of any party of hedging instrument. The interest rate swap agreements and the hedged items are subject to fluctuations in the underlying market rate of interest and the Group expects the fair value of the interest rate swap contract and the value of the hedged item to generally change in the opposite direction. The fair value of the interest rate swap at the end of the reporting period is determined by discounting future cash flows estimated by using the yield curve at the end of the reporting period and the credit risk embedded in the contract and the average interest rate is determined based on the outstanding balance at the end of the reporting period. The variable interest rate applied to the interest rate swap is Compounding SOFR or CD 3M plus spread. In accordance with the terms of each interest rate swap contract designated as a hedging instrument, the Group receives interest at a fixed interest rate and pays interest at a variable interest rate. 2) Cash Flow Hedge As of the December 31, 2023, the Group has applied cash flow hedge on local currency denominated debentures amounting to 179,945 million won and debentures on foreign currency amounting to 752,447 million won The Group’s hedging strategies are to ① Mitigate risks of cash flow fluctuation from variable interest rate debentures on local currency due to changes in market interest rate by entering into an interest rate swap contract and thereby designating it as hedging instrument; ② Mitigate the risks of cash flow fluctuation from principal and interest of variable interest rate debentures denominated in foreign currency due to changes in foreign exchange rates and interest rates by entering into a currency swap contract and thereby designating it as hedging instrument; ③ Mitigate the risks of cash flow fluctuation from principal and interest of fixed interest rate debentures denominated in foreign currency due to changes in foreign exchange rates and ④ Mitigate the risks of cash flow fluctuation in variable interest rate foreign currency borrowings resulting from changes in market interest rates and designate it as a hedging instrument through entering into currency swap contracts and interest rate swap contracts. This means exchanging a predetermined nominal amount as set forth in the interest rate swap contract adjusted by the differences between the fixed and variable interest rates, which results in the conversion of interest rates of debentures in local currency from variable interest into fixed interest, eliminating the cash flow fluctuation risk. WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 150 - In addition, this also means a payment of predetermined principal amount as set forth in the currency swap adjusted by fixed interest rate, an exchange of an amount calculated by applying variable interest rate to USD or applying fixed interest rate to SGD, and an exchange of the principal denominated in KRW and principal denominated in foreign currency at maturity eliminating cash flow fluctuation risk on principal and interest. The hedge ratio is determined by matching the nominal amount of the hedging instrument to the face amount of the hedged item in accordance with interest rate swap and currency swap. Only interest rate and foreign exchange rate fluctuation risk, which is the most significant factor in the cash flow fluctuation of the hedged item, is addressed in this hedging relationship, and other risk factors such as credit risk are not subject to hedging. Thus, there could be hedge ineffectiveness arising from price margin set by the counterparty of hedging instruments and unilateral change in credit risk of any party in the transaction. The interest rate swap, currency swap contract and the hedged item are all affected by the changes in market interest rate and foreign exchange rates which are basic factors of the derivative. The Group expects that the value of interest rate swap contract, currency swap contract and value of the hedged item will generally fluctuate in opposite direction. 3) Hedges of Net Investment in Foreign Operations Foreign currency exposure arises from the Group's net investments in Woori America Bank, Woori Bank(Cambodia) PLC and Hong Kong Woori Investment Bank, and overseas branches, which use USD as their functional currency. The risk arises from fluctuations in the spot exchange rate between USD and KRW. This may result in different net investment amounts. The risk hedged in the net investment hedging is the volatility of KRW against USD, which may reduce the carrying amount of the Group's net investments in Woori America Bank, Woori Bank(Cambodia) PLC and Hong Kong Woori Investment Bank. A portion of the Group's net investments in Woori America Bank, Woori Bank(Cambodia) PLC and Hong Kong Woori Investment Bank, and overseas branches are hedged in USD denominated foreign currency bonds(Carrying amount as of December 31, 2023: USD 863,959,317) and mitigate foreign exchange risk arising from the net assets of subsidiaries. The bonds was designated as a hedging instrument for changes in the value of net investment resulting from fluctuations in the USD/KRW spot exchange rate. To assess the effectiveness of the hedging instrument, the Group determines the economic relationship between the hedging instrument and the hedged item by comparing (offsetting) changes in the carrying amount of the liability due to changes in the spot exchange rate with changes. The Group's policy is to hedge the net investment only within the principal range of the liability. WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 151 - (3) The nominal amounts of the hedging instrument are as follows (Unit: USD, AUD, EUR, and Korean Won in millions): December 31, 2023 1 year or less 1 year to 5 years More than 5 years Total Fair value hedge Interest rate risk Interest rate swap (USD) 1,000,000,000 1,975,000,000 - 2,975,000,000 Interest rate swap (KRW) 240,000 - 20,000 260,000 Cash flow hedge Interest rate risk Interest rate swap (KRW) - 140,000 - 140,000 Foreign currencies translation risk and interest rate risk Currency swap (USD) - 270,000,000 - 270,000,000 Foreign currencies translation risk Currency swap (USD) - 100,000,000 - 100,000,000 Currency swap (EUR) - 194,780,000 - 194,780,000 Hedges of net investment in foreign operations Exchange risk Foreign currency bond (USD) 400,000,000 463,959,317 - 863,959,317 December 31, 2022 1 year or less 1 year to 5 years More than 5 years Total Fair value hedge Interest rate risk Interest rate swap (USD) - 2,075,000,000 300,000,000 2,375,000,000 Interest rate swap (AUD) 150,000,000 - - 150,000,000 Interest rate swap (KRW) 150,000 - - 150,000 Cash flow hedge Interest rate risk Interest rate swap (KRW) 50,000 140,000 - 190,000 Foreign currencies translation risk and interest rate risk Currency swap (USD) - 270,000,000 - 270,000,000 Foreign currencies translation risk Currency swap (USD) 80,000,000 100,000,000 - 180,000,000 Currency swap (EUR) - 194,780,000 - 194,780,000 Hedges of net investment in foreign operations Exchange risk Foreign currency bond (USD) 272,390,437 592,000,000 - 864,390,437 WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 152 - (4) The average interest rate and average currency rate of the hedging instrument as of December 31, 2023 and 2022 are as follows: December 31, 2023 Average interest rate and average exchange rate Fair value hedge Interest rate risk Interest rate swap (USD) Fixed 3.60% receipt and (C.SOFR) + 1.47% paid Interest rate swap (KRW) Fixed 4.13% receipt and CD 3M paid Cash flow hedge Interest rate risk Interest rate swap (KRW) KRW CMS 5Y+0.46% receipt, 3.65% paid Foreign currencies translation risk and interest rate risk Currency swap (USD) USD 1M SOFR+1.12% receipt, KRW 4.37% paid, USD/KRW = 1,293.97 Foreign currencies translation risk Currency swap (USD) USD 1.75% receipt, KRW 1.63% paid, USD/KRW = 1,138.50 Currency swap (EUR) EUR 1.98% receipt, KRW 3.40% paid, EUR/KRW = 1,344.08 Hedges of net investment Exchanging rate risk Foreign currency denominated debentures(USD/KRW) 1,306.12 December 31, 2022 Average interest rate and average exchange rate Fair value hedge Interest rate risk Interest rate swap (USD) Fixed 3.62% receipt and Libor 3M+1.45% floating paid Interest rate swap (USD) Fixed 2.05% receipt and (C.SOFR)+0.65% paid Interest rate swap (AUD) Fixed 0.84% receipt and BBSW 3M+0.72% paid Interest rate swap (KRW) Fixed 3.13% receipt and CD 3M paid Cash flow hedge Interest rate risk Interest rate swap (KRW) KRW CMS 5Y+0.46% receipt, 3.65% paid Interest rate swap (KRW) KRW CD+0.33% receipt, 1.68% paid Foreign currencies translation risk and interest rate risk Currency swap (USD) USD 1M Libor+0.79% receipt, KRW 0.80% paid, KRW/USD = 1,226.29 Foreign currencies translation risk Currency swap (USD) USD 1.50% receipt, KRW 1.57% paid, KRW/USD = 1,140.50 Currency swap (EUR) EUR 1.98% receipt, KRW 3.86% paid, KRW/EUR = 1,344.08 Hedges of net investment Exchanging rate risk Foreign currency denominated debentures(KRW/USD) 1,344.37 WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 153 - (5) The amounts related to items designated as hedging instruments are as follows (Unit: USD, AUD, EUR, and Korean Won in millions): December 31, 2023 Nominal amounts of the hedging instrument Carrying amount of the hedging instrument Line item in the statement of financial position where the hedging instrument is located Changing in fair value used for calculating hedge ineffectiveness Assets Liabilities Fair value hedge Interest rate risk Interest rate Swap(USD) 2,975,000,000 698 135,263 Derivative assets (designated for hedging) 55,651 Interest rate Swap(KRW) 260,000 Cash flow hedge Interest rate risk Interest rate swap(KRW) 140,000 - 512 Derivative liabilities (designated for hedging) (2,433) Foreign currency translation risk and interest rate risk Currency swap(USD) 270,000,000 7,356 17,232 Derivative assets (designated for hedging) Derivative liabilities (designated for hedging) (913) Foreign currency translation risk Currency swap(USD) 100,000,000 10,956 - Derivative assets (designated for hedging) (5,644) Currency swap(EUR) 194,780,000 7,698 - Derivative assets (designated for hedging) 19,063 Hedges of net investment in foreign operations Exchange rate risk Foreign currency bond(USD) 863,959,317 - 1,113,989 Foreign currency bond (19,088) December 31, 2022 Nominal amounts of the hedging instrument Carrying amount of the hedging instrument Line item in the statement of financial position where the hedging instrument is located Changing in fair value used for calculating hedge ineffectiveness Assets Liabilities Fair value hedge Interest rate risk Interest rate Swap(USD) 2,375,000,000 - 193,831 Derivative assets (designated for hedging) Derivative liabilities (designated for hedging) (247,765) Interest rate Swap(AUD) 150,000,000 Interest rate Swap(KRW) 150,000 Cash flow hedge Interest rate risk Interest rate swap(KRW) 190,000 2,041 - Derivative liabilities (designated for hedging) 1,690 Foreign currency translation risk and interest rate risk Currency swap(USD) 270,000,000 17,909 - Derivative liabilities (designated for hedging) 58,253 Foreign currency translation risk Currency swap(USD) 180,000,000 17,836 - Derivative liabilities (designated for hedging) 9,317 Currency swap(EUR) 194,780,000 - 9,080 Derivative liabilities (designated for hedging) (10,286) Hedges of net investment in foreign operations Exchange rate risk Foreign currency bond(USD) 864,390,437 - 1,095,442 Foreign currency bond (28,553) WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 154 - (6) Details of carrying amount to hedge and amount due to hedge accounting are as follows (Unit: Korean Won in millions): December 31, 2023 Carrying amount of the hedged item Accumulated amount of fair value hedge adjustments on the hedged item included in the carrying amount of the hedged item Line item in the statement of financial position in which the hedged item is included Changing in fair value used for calculating hedge ineffectivene ss Cash flow hedge reserve (*) Assets Liabilities Assets Liabilities Fair value hedge Interest rate risk Debentures - 3,943,224 - 142,902 Debentures (58,306) - Cash flow hedge Interest rate risk Debentures - 179,945 - - Debentures 2,433 25 Foreign currencies translation risk and interest rate risk Debentures - 346,388 - - Debentures 22,914 (8,819) Foreign currencies translation risk Debentures - 406,059 - - Debentures (13,419) (11,416) Hedges of net investment in foreign operations Exchange rate risk Foreign operations net asset - 1,113,989 - - Foreign operations net asset 19,088 (34,750) (*) After tax amount December 31, 2022 Carrying amount of the hedged item Accumulated amount of fair value hedge adjustments on the hedged item included in the carrying amount of the hedged item Line item in the statement of financial position in which the hedged item is included Changing in fair value used for calculating hedge ineffectivene ss Cash flow hedge reserve (*) Assets Liabilities Assets Liabilities Fair value hedge Interest rate risk Debentures - 3,076,983 - (199,804) Debentures 257,911 - Cash flow hedge Interest rate risk Debentures - 229,892 - - Debentures (3,742) 2,531 Foreign currencies translation risk and interest rate risk Debentures - 342,019 - - Debentures (23,296) 8,648 Foreign currencies translation risk Debentures - 752,901 - - Debentures 11,256 (24,600) Hedges of net investment in foreign operations Exchange rate risk Foreign operations net asset - 1,095,442 - - Foreign operations net asset 28,553 (38,797) (*) After tax amount WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 155 - (7) Amounts recognized in profit or loss due to the ineffective portion of fair value hedges during the current period are as follows (Unit: Korean Won in millions): For the year ended December 31, 2023 Hedge ineffectiveness recognized in profit or loss Line item in the profit or loss that includes hedge ineffectiveness Fair value hedge Interest rate risk (2,655) Other net operating income(expense) For the year ended December 31, 2022 Hedge ineffectiveness recognized in profit or loss Line item in the profit or loss that includes hedge ineffectiveness Fair value hedge Interest rate risk 10,146 Other net operating income(expense) (8) Reclassification of profit or loss from other comprehensive income and equity related to cash flow hedges are as follows (Unit: Korean Won in millions): For the year ended December 31, 2023 Changes in the value of hedging instruments recognized in OCI Hedge ineffective ness recognize d in profit or loss Changes in the value of foreign basis spread recognized in OCI Line item recognized in the profit or loss Amounts reclassified from cash flow hedge reserve to profit or loss Line item affected in profit or loss due to reclassification Cash flow hedge Interest rate risk (2,433) - - Other net operating income (expense) - Other net operating income (expense) Foreign currencies translation risk and interest rate risk (913) - (4,871) Other net operating income (expense) (11,683) Other net operating income (expense) Foreign currencies translation risk 13,419 - (3,521) Other net operating income (expense) (6,950) Other net operating income (expense) For the year ended December 31, 2022 Changes in the value of hedging instruments recognized in OCI Hedge ineffective ness recognize d in profit or loss Changes in the value of foreign basis spread recognized in OCI Line item recognized in the profit or loss Amounts reclassified from cash flow hedge reserve to profit or loss Line item affected in profit or loss due to reclassification Cash flow hedge Interest rate risk 1,653 37 - Other net operating income (expense) 220 Other net operating income (expense) Foreign currencies translation risk and interest rate risk 58,253 - (1,721) Other net operating income (expense) (53,743) Other net operating income (expense) Foreign currencies translation risk (969) - 2,046 Other net operating income (expense) (16,111) Other net operating income (expense) WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 156 - (9) The amounts recognized in profit or loss and other comprehensive income related to the hedging of net investments in foreign operations are as follows (Unit: Korean Won in millions): For the year ended December 31, 2023 Profit or loss recognized in OCI Hedge ineffectiveness recognized in profit or loss Line item which recognized the hedge ineffectiveness Hedges of net investment in foreign operation Exchange rate risk (19,088) 5,039 (14,049) For the year ended December 31, 2022 Profit or loss recognized in OCI Hedge ineffectiveness recognized in profit or loss Line item which recognized the hedge ineffectiveness Hedges of net investment in foreign operation Exchange rate risk (38,797) - - 27. DEFERRED DAY 1 PROFITS OR LOSSES Changes in deferred day 1 profits or losses are as follows (Unit: Korean Won in millions): For the years ended December 31 2023 2022 Beginning balance 17,964 29,111 New transactions - 21,656 Amounts recognized in losses (10,116) (32,803) Ending balance 7,848 17,964 In case some variables to measure fair values of financial instruments are not observable in the market, valuation techniques are utilized to evaluate such financial instruments. Those financial instruments are recorded the transaction price as at the time of acquisition, even though there are difference noted between the transaction price and the fair value. The table above presents the difference yet to be realized as profit or losses as of December 31,2023 and 2022. 28. EQUITY (1) Details of equity as of December 31, 2023 and 2022 are as follows (Unit: Korean Won in millions): December 31, 2023 December 31, 2022 Capital Common stock capital 3,802,676 3,640,303 Hybrid securities 3,611,129 3,112,449 Capital surplus Paid in capital in excess of par 854,499 643,544 Others 81,064 38,841 Sub-total 935,563 682,385 Capital adjustments Treasury stocks (39,348) (3,819) Other adjustments (*1) (1,648,535) (1,780,367) Sub-total (1,687,883) (1,784,186) Accumulated other comprehensive income Financial assets at FVTOCI 79,694 (645,731) Changes in capital due to equity method 3,471 475 Gain (loss) on foreign currency translation 15,579 (24,202) WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 157 - of foreign operations Gain (loss) on hedges of net investment in foreign operations (34,750) (20,701) Remeasurements of defined benefit plan (24,262) 55,235 Gain (loss) on valuation of cash flow hedge (20,806) (4,282) Sub-total 18,926 (639,206) Retained earnings (*2) (*3) 24,986,470 23,750,152 Non-controlling interest (*4) 1,730,609 2,865,445 Total 33,397,490 31,627,342 (*1) Included 178,060 million Won in capital transaction gains and losses recognized by Woori Bank and (formerly) Woori Financial Group in 2014 and 2,238,228 million Won due to the spin-off of Gyeongnam Bank and Gwangju Bank. (*2) The regulatory reserve for credit losses in retained earnings amounted to 2,839,475 million Won and 2,966,960 million Won as of December 31, 2023 and 2022, respectively in accordance with the relevant article. (*3) The earned surplus reserve in retained earnings amounted to 300,190 million Won and 181,860 million Won as of December 31, 2023 and 2022 in accordance with the Article 53 of the Financial Holding Company Act. (*4) The hybrid securities issued by Woori Bank amounting to 1,546,447 million Won and 2,344,816 million Won as of December 31, 2023 and 2022, respectively, are recognized as non-controlling interests. 95,637 million Won and 113,995 million Won of dividends for the hybrid securities issued by Woori Bank are allocated to net profit and loss of the non-controlling interests for the years ended December 31, 2023 and 2022, respectively. (2) The number of authorized shares and others of the Group are as follows: December 31, 2023 December 31, 2022 Shares of common stock authorized 4,000,000,000 Shares 4,000,000,000 Shares Par value 5,000 Won 5,000 Won Shares of common stock issued 751,949,461 Shares 728,060,549 Shares Capital stock 3,802,676 million Won 3,640,303 million Won (3) Hybrid securities The bond-type hybrid securities classified as owner’s equity are as follows (Unit: Korean Won in millions): Issue date Maturity Interest rate (%) December 31, 2023 December 31, 2022 Securities in local currency 2019-07-18 - 3.49 500,000 500,000 Securities in local currency 2019-10-11 - 3.32 500,000 500,000 Securities in local currency 2020-02-06 - 3.34 400,000 400,000 Securities in local currency 2020-06-12 - 3.23 300,000 300,000 Securities in local currency 2020-10-23 - 3.00 200,000 200,000 Securities in local currency 2021-04-08 - 3.15 200,000 200,000 Securities in local currency 2021-10-14 - 3.60 200,000 200,000 Securities in local currency 2022-02-17 - 4.10 300,000 300,000 Securities in local currency 2022-07-28 - 4.99 300,000 300,000 Securities in local currency 2022-10-25 - 5.97 220,000 220,000 Securities in local currency 2023-02-10 - 4.65 300,000 - Securities in local currency 2023-09-07 - 5.04 200,000 - WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 158 - Issuance cost (8,871) (7,551) Total 3,611,129 3,112,449 The hybrid securities mentioned above do not have maturity date but are redeemable after 5 years from date of issuance. (4) Accumulated other comprehensive income Changes in the accumulated other comprehensive income are as follows (Unit: Korean Won in millions): For the year ended December 31, 2023 Beginning balance Increase (decrease) (*) Reclassification adjustments Income tax effect Ending balance Net gain (loss) on valuation of financial assets at FVTOCI (645,731) 783,583 200,309 (258,467) 79,694 Changes in capital due to equity method 475 (1,434) - 4,430 3,471 Gain (loss) on foreign currency translation of foreign operations (24,202) 39,458 - 323 15,579 Gain (loss) on hedges of net investment in foreign operations (20,701) (19,088) - 5,039 (34,750) Remeasurement gain (loss) related to defined benefit plan 55,235 (108,217) - 28,720 (24,262) Gain (loss) on valuation of cash flow hedge (4,282) (15,906) (944) 326 (20,806) Total (639,206) 678,396 199,365 (219,629) 18,926 (*) The increase(decrease) of financial asset valuation profit or loss at fair value through other comprehensive income and non-current assets held for sale are changes due to the period evaluation, and the reclassification adjustments amounting to 86 million Won and (50) million Won are due to disposal of equity securities and non-current assets held for sale, respectively during the period. For the year ended December 31, 2022 Beginning balance Increase (decrease) (*) Reclassification adjustments Income tax effect Ending balance Net gain (loss) on valuation of financial assets at FVTOCI (162,522) (659,906) 21,498 155,199 (645,731) Changes in capital due to equity method (138) 6,563 - (5,950) 475 Gain (loss) on foreign currency translation of foreign operations (63,781) 33,368 - 6,211 (24,202) Gain (loss) on hedges of net investment in foreign operations - (28,553) - 7,852 (20,701) Remeasurement gain (loss) related to defined benefit plan (195,944) 346,553 - (95,374) 55,235 Gain (loss) on valuation of cash flow hedge 5,553 (10,373) (220) 758 (4,282) Capital related to non-current assets held for sale 279 (385) - 106 - Total (416,553) (312,733) 21,278 68,802 (639,206) (*) The increase(decrease) of financial asset valuation profit or loss at fair value through other comprehensive income and non-current assets held for sale are changes due to the period evaluation, and the reclassification adjustments amounting to (10,254) million Won and 279 million Won are due to disposal of equity securities and non-current assets held for sale, respectively during the period. WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 159 - (5) Regulatory Reserve for Credit Loss In accordance with Article 26 ~ 28 of the Financial holding company Supervision Regulations, the Group calculates and discloses the regulatory reserve for credit loss. 1) Balance of the regulatory reserve for credit loss Balance of the planned regulatory reserve for credit loss is as follows (Unit: Korean Won in millions): December 31, 2023 December 31, 2022 Beginning balance 2,839,475 2,966,960 Planned provision of regulatory reserve (reversal) for credit loss (446,933) (127,485) Ending balance 2,392,542 2,839,475 2) Provision of regulatory reserve for credit loss, adjusted income after the provision of regulatory reserve and others Planned reserves provided, adjusted net income after the planned reserves provided and adjusted EPS after the planned reserves provided are as follows (Unit: Korean Won in millions, except for EPS amount): For the years ended December 31 2023 2022 Net income before regulatory reserve 2,626,894 3,323,982 Provision of regulatory reserve (reversal) for credit loss (446,933) (127,485) Adjusted net income after the provision of regulatory reserve 3,073,827 3,451,467 Dividends to hybrid securities (131,148) (91,756) Adjusted net income after regulatory reserve and dividends to hybrid securities 2,942,679 3,359,711 Adjusted EPS after regulatory reserve and the dividends to hybrid securities (Unit: Korean Won) 4,002 4,615 (6) Treasury stock Details of treasury stocks are as follows (Unit: Shares, Korean Won in millions): December 31, 2023 Beginning balance Acquisition Disposal and others Ending balance Number of shares 343,991 13,552,312 (10,468,806) 3,427,497 Carrying amount 3,819 157,222 (121,693) 39,348 December 31, 2022 Beginning balance Acquisition Disposal and others Ending balance Number of shares 343,991 - - 343,991 Carrying amount 3,819 - - 3,819 WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 160 - 29. DIVIDENDS (1) Dividends per share and the total dividends for the fiscal year ending December 31, 2022 were 980 Won and 713,497 million Won, respectively, and the dividends were approved at the regular general shareholders' meeting held on March 24, 2023 and were paid in April 2023. (2) On July 21, 2023, in accordance with a resolution of the Board of Directors, the Group declared the quarterly dividend of 180 Won per share (total dividend of 130,748 million Won) with June 30, 2023 as record date, and the dividends were paid in August 2023. (3) On October 26, 2023, in accordance with a resolution of the Board of Directors, the Group declared the quarterly dividend of 180 won per share (a total dividend of 135,341 million Won) with September 30, 2023 as record date, and the dividends were paid in November 2023. (4) A dividend in respect of the year ended December 31, 2023, of 640 won per share, amounting to a total dividend of 481,213 million Won, is to be proposed to shareholders at the annual general meeting on March 22, 2024, with February 29, 2024 as record date. These financial statements do not include this dividend payable. 30. NET INTEREST INCOME (1) Interest income recognized is as follows (Unit: Korean Won in millions): For the years ended December 31 2023 2022 Financial assets at FVTPL 192,094 106,698 Financial assets at FVTOCI 999,407 632,615 Financial assets at amortized cost: Securities at amortized cost 782,513 515,246 Loans and other financial assets at amortized cost: Interest on due from banks 543,789 244,331 Interest on loans 18,042,706 13,109,022 Interest of other receivables 81,045 46,637 Subtotal 18,667,540 13,399,990 Total 20,641,554 14,654,549 (2) Details of interest expense recognized are as follows (Unit: Korean Won in millions): For the years ended December 31 2023 2022 Interest on deposits due to customers 8,738,249 4,120,811 Interest on borrowings 1,294,710 598,185 Interest on debentures 1,507,108 1,036,191 Other interest expense 348,588 195,090 Interest on lease liabilities 10,359 7,693 Total 11,899,014 5,957,970 WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 161 - 31. NET FEES AND COMMISSIONS INCOME (1) Details of fees and commissions income recognized are as follows (Unit: Korean Won in millions): For the years ended December 31 2023 2022 Fees and commission received for brokerage 146,216 185,545 Fees and commission received related to credit 182,151 189,856 Fees and commission received for electronic finance 125,760 130,712 Fees and commission received on foreign exchange handling 55,993 56,812 Fees and commission received on foreign exchange 99,071 96,713 Fees and commission received for guarantee 88,580 85,340 Fees and commission received on credit card 640,918 594,897 Fees and commission received on securities business 58,553 111,211 Fees and commission from trust management 266,197 266,447 Fees and commission received on credit information 10,768 10,190 Fees and commission received related to lease 698,463 572,563 Other fees 193,144 199,414 Total 2,565,814 2,499,700 (2) Details of fees and commissions expense incurred are as follows (Unit: Korean Won in millions): For the years ended December 31 2023 2022 Fees and commissions paid 339,340 325,536 Credit card commission 488,742 446,885 Securities business commission 1,287 1,414 Others 15,964 15,695 Total 845,333 789,530 32. DIVIDEND INCOME (1) Details of dividend income recognized are as follows (Unit: Korean Won in millions): For the years ended December 31 2023 2022 Dividend income related to financial assets at FVTPL 222,357 136,136 Dividend income related to financial assets at FVTOCI 17,936 23,846 Total 240,293 159,982 (2) Details of dividends related to financial assets at FVTOCI are as follows (Unit: Korean Won in millions): For the years ended December 31 2023 2022 Dividend income recognized from assets held: Equity securities 17,936 23,846 WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 162 - 33. NET GAIN OR LOSS ON FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS MANDATORILY MEASURED AT FAIR VALUE (1) Details of gains or losses related to net gain or loss on financial instruments at FVTPL are as follows (Unit: Korean Won in millions): For the years ended December 31 2023 2022 Gain on financial instruments at fair value through profit or loss measured at fair value 488,486 238,502 Total 488,486 238,502 (2) Details of net gain or loss on financial instruments at fair value through profit or loss measured at fair value and financial instruments held for trading are as follows (Unit: Korean Won in millions): For the years ended December 31 2023 2022 Financial assets at FVTPL Securities Gain on transactions and valuation 889,250 294,667 Loss on transactions and valuation (191,144) (553,093) Sub-total 698,106 (258,426) Loans Gain on transactions and valuation 6,064 24,005 Loss on transactions and valuation (2,289) (2,219) Sub-total 3,775 21,786 Other financial assets Gain on transactions and valuation 9,742 21,602 Loss on transactions and valuation (19,291) (12,314) Sub-total (9,549) 9,288 Sub-total 692,332 (227,352) Derivatives (Held for trading) Interest rates derivatives Gain on transactions and valuation 4,741,233 5,216,543 Loss on transactions and valuation (4,990,352) (3,625,834) Sub-total (249,119) 1,590,709 Currency derivatives Gain on transactions and valuation 7,677,720 14,601,674 Loss on transactions and valuation (7,528,291) (15,713,074) Sub-total 149,429 (1,111,400) Equity derivatives Gain on transactions and valuation 3,169,071 2,836,843 Loss on transactions and valuation (3,273,202) (2,850,334) Sub-total (104,131) (13,491) Other derivatives Gain on transactions and valuation 14 49 Loss on transactions and valuation (39) (13) Sub-total (25) 36 Sub-total (203,846) 465,854 Net, total 488,486 238,502 WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 163 - 34. NET GAIN OR LOSS ON FINANCIAL ASSETS AT FVTOCI Details of net gain or loss on financial assets at FVTOCI recognized are as follows (Unit: Korean Won in millions) : For the years ended December 31 2023 2022 Gain (Loss) on redemption of securities 104 (7) Losses on transactions of securities (37,745) (21,491) Total (37,641) (21,498) 35. REVERSAL OF (PROVISION FOR) IMPAIRMENT LOSSES DUE TO CREDIT LOSS Reversal of (provision for) impairment losses due to credit loss are as follows (Unit: Korean Won in millions): For the years ended December 31 2023 2022 Reversal(provision) due to credit loss on financial assets measured at FVTOCI (16,542) 827 Provision for impairment loss due to credit loss on securities at amortized cost (5,549) (3,151) Provision for impairment loss due to credit loss on loan and other financial assets at amortized cost (1,839,987) (881,668) Provision for guarantees (3,555) (7,611) Reversal of provision for unused loan commitment (provision for unused loan commitment) (29,283) 6,332 Total (1,894,916) (885,271) WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 164 - 36. GENERAL AND ADMINISTRATIVE EXPENSES AND OTHER NET OPERATING INCOME (EXPENSES) (1) Details of general and administrative expenses recognized are as follows (Unit: Korean Won in millions): For the years ended December 31 2023 2022 Employee benefits Short-term employee benefits Salaries 1,831,137 1,980,363 Employee fringe benefits 600,001 590,255 Share based payment 12,946 9,632 Retirement benefit service costs 119,670 169,303 Termination 164,922 162,019 Subtotal 2,728,676 2,911,572 Depreciation and amortization 503,035 521,827 Other general and administrative expenses Rent 124,355 80,130 Taxes and public dues 190,334 157,905 Service charges 245,656 233,495 Computer and IT related 144,017 127,186 Telephone and communication 88,018 84,204 Operating promotion 53,896 53,733 Advertising 161,896 160,464 Printing 6,072 6,799 Traveling 13,364 10,716 Supplies 9,156 8,309 Insurance premium 14,380 20,670 Maintenance 24,932 23,266 Water, light, and heating 19,161 16,165 Vehicle maintenance 14,725 14,831 Others(*) 101,760 98,618 Sub-total 1,211,722 1,096,491 Total 4,443,433 4,529,890 (*) In-house welfare fund contributions amounted to 40,047 million Won and 40,200 million Won as of December 31, 2023 and 2022, respectively. (2) Details of other operating income recognized are as follows (Unit: Korean Won in millions): For the years ended December 31 2023 2022 Gains on transactions of foreign exchange 1,428,737 1,403,083 Gains related to derivatives (designated for hedging) 114,875 71,179 Gains on fair value hedged items 8,986 257,910 Others 288,862 249,509 Total 1,841,460 1,981,681 WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 165 - (3) Details of other operating expenses recognized are as follows (Unit: Korean Won in millions): For the years ended December 31 2023 2022 Losses on transactions of foreign exchange 1,295,557 1,181,663 KDIC deposit insurance premium 464,213 423,834 Contribution to miscellaneous funds 453,805 402,057 Losses related to derivatives (Designated for hedging) 35,583 250,268 Losses on fair value hedged items 72,601 - Others (*) 1,040,424 736,112 Total 3,362,183 2,993,934 (*) Other expense includes 22,349 million Won and 14,664 million Won for intangible asset amortization cost and 462,394 million Won and 388,895 million Won for lease depreciation cost for the years ended December 31, 2023 and 2022, respectively. WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 166 - (4) Share-based payment Details of performance condition share-based payment granted to executives as of December 31, 2023 and 2022 are as follows. 1) Performance condition share-based payment Subject to Shares granted for the year 2020 Type of payment Cash-settled Vesting period January 1, 2020 ~ December 31, 2023 Date of payment 2024-01-01 Fair value (*1) 12,885 Won Valuation method Black-Scholes Model Expected dividend rate 6.25% Expected maturity date - Number of shares remaining As of December 31, 2023 944,343 shares As of December 31, 2022 944,343 shares Number of shares granted (*2) As of December 31, 2023 944,343 shares As of December 31, 2022 944,343 shares Subject to Shares granted for the year 2021 Type of payment Cash-settled Vesting period January 1, 2021 ~ December 31, 2024 Date of payment 2025-01-01 Fair value (*1) 12,105 Won Valuation method Black-Scholes Model Expected dividend rate 6.25% Expected maturity date 1 year Number of shares remaining As of December 31, 2023 1,105,515 shares As of December 31, 2022 1,105,515 shares Number of shares granted (*2) As of December 31, 2023 1,105,515 shares As of December 31, 2022 1,105,515 shares Subject to Shares granted for the year 2022 Type of payment Cash-settled Vesting period January 1, 2022 ~ December 31, 2025 Date of payment 2026-01-01 Fair value (*1) 11,371 Won Valuation method Black-Scholes Model Expected dividend rate 6.25% Expected maturity date 2 years Number of shares remaining As of December 31, 2023 968,119 shares As of December 31, 2022 968,119 shares Number of shares granted (*2) As of December 31, 2023 968,119 shares As of December 31, 2022 968,119 shares Subject to Shares granted for the year 2023 Type of payment Cash-settled Vesting period January 1, 2023 ~ December 31, 2026 Date of payment 2027-01-01 Fair value (*1) 10,683 Won Valuation method Black-Scholes Model Expected dividend rate 6.25% Expected maturity date 3 years Number of shares remaining As of December 31, 2023 924,077 shares As of December 31, 2022 - Number of shares granted (*2) As of December 31, 2023 924,077 shares As of December 31, 2022 - WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 167 - (*1) As the amount of payment varies according to the base price (the arithmetic average of the weighted average stock price of transactions in the past one week, the past one month, and the past two months) at the date of payment, the fair value is calculated to measure the liability according to the Black Scholes model based on the base price at the time of each settlement. (*2) It is a system in which the amount of stock payable is determined at the beginning, and the payment rate is determined in accordance with the degree of achievement of the pre-set performance target. Performance is evaluated by long- term performance indicators such as relative shareholder return, net profit, return on equity (ROE), non-performing loan ratio, and job performance. 2) The Group accounts for performance condition share-based payments according to the cash-settled method and the fair value of the liabilities is reflected in the compensation costs by re-measuring every closing period. As of December 31, 2023 and 2022, the carrying amount of the liabilities related to the performance condition share-based payments recognized by the Group amounts to 46,741 million Won and 41,334 million Won, respectively, including the carrying amount of liabilities related to key management of 19,924 million Won and 17,494 million Won, respectively. WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 168 - 37. NON-OPERATING INCOME (EXPENSES) (1) Details of gains or losses on valuation of investments in joint ventures and associates are as follows (Unit: Korean Won in millions): For the years ended December 31 2023 2022 Gains on valuation of investments in joint ventures and associates 132,541 98,858 Losses on valuation of investments in joint ventures and associates (22,710) (11,133) Impairment losses of investments in joint ventures and associates - (17,728) Total 109,831 69,997 (2) Details of other non-operating income and expenses recognized are as follows (Unit: Korean Won in millions): For the years ended December 31 2023 2022 Other non-operating incomes 117,746 158,778 Other non-operating expenses (209,153) (173,924) Total (91,407) (15,146) (3) Details of other non-operating income recognized are as follows (Unit: Korean Won in millions): For the years ended December 31 2023 2022 Rental fee income 26,477 22,798 Gains on disposal of investments in joint ventures and associates 33,123 599 Gains on disposal of Property, Plant and Equipment, intangible assets and other assets 5,267 55,852 Reversal of impairment losses of Property, Plant and Equipment, intangible assets and other assets 230 310 Others (*) 52,649 79,219 Total 117,746 158,778 (*) ‘Others’ for the year ended December 31, 2023 and 2022 include 14,060 million Won and 46,536 million Won of other special gain related to other provisions. (4) Details of other non-operating expenses recognized are as follows (Unit: Korean Won in millions): For the years ended December 31 2023 2022 Depreciation on investment properties 5,398 3,925 Operating expenses on investment properties 2,058 1,448 Losses on disposal of investments in joint ventures and associates 588 3,690 Losses on disposal of Property, Plant and Equipment, intangible assets and other assets 1,873 3,177 Impairment losses of Property, Plant and Equipment, intangible assets and other assets 129 260 Donation 63,729 50,547 Others (*) 135,378 110,877 Total 209,153 173,924 (*) Other special losses related to other provisions for the years ended December 31, 2023 and 2022 are 66,910 million Won and 18,458 million Won, respectively, and other special losses related to employee incidents for the year ended December 31, 2022 are 63,354 million Won. WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 169 - 38. INCOME TAX EXPENSE (1) Details of income tax expenses are as follows (Unit: Korean Won in millions): For the years ended December 31 2023 2022 Current tax expense: Current tax expense with respect to the current period 689,395 1,332,636 Adjustments recognized in the current period in relation to the tax expense of prior periods (22,825) (13,982) Income tax expense directly attributable to other equity 5,039 7,852 Sub-total 671,609 1,326,506 Deferred tax expense Change in deferred tax assets (liabilities) due to temporary differences 442,852 (234,909) Income tax expense(income) directly attributable to equity (224,668) 68,802 Others 766 993 Sub-total 218,950 (165,114) Income tax expense 890,559 1,161,392 (2) Income tax expense reconciled to net income before income tax expense is as follows (Unit: Korean Won in millions): For the years ended December 31 2023 2022 Net income before income tax expense 3,517,453 4,485,374 Tax calculated at statutory tax rate (*1)(*2) 859,608 1,154,285 Adjustments: Effect of income that is exempt from taxation (37,500) (73,488) Effect of expenses that are not deductible in determining taxable income 12,163 26,793 Adjustments recognized in the current period in relation to the current tax of prior periods (22,456) (14,088) Others 78,744 67,890 Sub-total 30,951 7,107 Income tax expense 890,559 1,161,392 Effective tax rate 25.32% 25.90% (*1) The applicable income tax rate: 9.9% up to 200 million Won in tax basis, 20.9% over 200 million Won to 20 billion Won, 23.1% over 20 billion Won to 300 billion Won and 26.4% over 300 billion Won. (*2) The applicable income tax rate of prior fiscal year: 11% up to 200 million Won in tax basis, 22% over 200 million Won to 20 billion Won, 24.2% over 20 billion Won to 300 billion Won and 27.5% over 300 billion Won. WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 170 - (3) Changes in deferred tax assets and liabilities for the years ended December 31, 2023 and 2022, are as follows (Unit: Korean Won in millions): For the year ended December 31, 2023 Beginning balance Business combination Recognized as income (expense) Recognized as other comprehensive income (expense) Ending Balance Gain (loss) on financial assets 373,145 - (272,072) (258,467) (157,394) Gain on valuation of investment stocks accounted in equity method 20,555 - (35,357) 4,430 (10,372) Gain (loss) on valuation of derivatives 10,617 - 24,869 326 35,812 Accrued income (90,330) - (42,608) - (132,938) Provision for loan losses (20,105) - 61,093 - 40,988 Loan and receivables written off 7,926 - 1,846 - 9,772 Loan origination costs and fees (169,093) - (4,324) - (173,417) Defined benefit obligation 369,785 - 29,308 28,172 427,265 Deposits with employee retirement insurance trust (450,222) - (50,044) 548 (499,718) Provision for guarantee 8,328 - (54) - 8,274 Other provision 87,229 - 91,888 - 179,117 Others (*) (70,335) (11,593) (22,729) 323 (104,334) Net deferred tax assets(liabilities) 77,500 (11,593) (218,184) (224,668) (376,945) (*) Among the deferred tax assets and liabilities classified as ‘Others,’ the deferred tax asset arising from unused tax losses amounts to 1,998 million won. For the year ended December 31, 2022 Beginning balance Business combination Recognized as income (expense) Recognized as other comprehensive income (expense) Ending Balance Gain (loss) on financial assets 273,356 - (55,410) 155,199 373,145 Gain on valuation using the equity method of accounting 15,260 - 11,139 (5,844) 20,555 Gain (loss) on valuation of derivatives (149,805) - 159,664 758 10,617 Accrued income (82,482) - (7,848) - (90,330) Provision for loan losses (34,625) - 14,520 - (20,105) Loan and receivables written off 8,244 - (318) - 7,926 Loan origination costs and fees (194,463) - 25,370 - (169,093) Defined benefit liability 449,615 - 15,760 (95,590) 369,785 Deposits with employee retirement insurance trust (432,001) - (18,437) 216 (450,222) Provision for guarantee 7,424 - 904 - 8,328 Other provision 100,571 - (13,342) - 87,229 Others (*) (116,907) (1,473) 33,982 14,063 (70,335) Net deferred tax assets (155,813) (1,473) 165,984 68,802 77,500 (*) Among the deferred tax assets and liabilities classified as ‘Others,’ the deferred tax asset arising from unused tax losses amounts to 3,536 million won. WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 171 - (4) Unrealizable temporary differences are as follows (Unit: Korean Won in millions): December 31, 2023 December 31, 2022 Deductible temporary differences 313,565 330,376 Tax loss carry forward 16,823 49,405 Taxable temporary differences (9,138,085) (8,898,834) Total (8,807,697) (8,519,053) No deferred income tax asset has been recognized for the deductible temporary difference of 302,214 million Won associated with investments in subsidiaries as of December 31, 2023, because it is not probable that the temporary differences will be reversed in the foreseeable future. Also, no deferred income tax asset has been recognized for the other 11,912 million won due to the uncertainty of its feasibility in the future. No deferred income tax liability has been recognized for the taxable temporary difference of 9,138,085 million won associated with investment in subsidiaries as of December 31, 2023, due to the following reasons: - The Group is able to control the timing of the reversal of the temporary difference. - It is probable that the temporary difference will not be reversed in the foreseeable future. As of December 31, 2023, the expected extinctive date of tax loss carry forward that are not recognized as deferred tax assets are as follows (Unit: Korean Won in millions): 1 year or less 1 – 2 years 2 – 3 years More than 3 years Tax loss carry forward 16,823 - - - (5) Details of accumulated current and deferred tax charged directly to other equity are as follows (Unit: Korean Won in millions): December 31, 2023 December 31, 2022 Gain on valuation of financial assets at FVTOCI (44,591) 213,876 Loss on valuation of equity method investments 664 (3,766) Gain on foreign currency translation of foreign operations 10,261 9,938 Gain on valuation of hedge accounting of the net investment in foreign operations 14,854 9,815 Remeasurements of the defined benefit plan 8,136 (20,584) Loss on derivatives designated as cash flow hedge 240 (86) Total (10,436) 209,193 (6) Current tax assets and liabilities are as follows (Unit: Korean Won in millions): December 31, 2023 December 31, 2022 Current tax assets 203,542 53,274 Current tax liabilities 103,655 843,555 WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 172 - 39. EARNINGS PER SHARE (“EPS”) (1) Basic EPS is calculated by dividing net income attributable to common shareholders by weighted-average number of common shares outstanding (Unit: Korean Won in millions, except for EPS and number of shares): For the years ended December 31 2023 2022 Net income attributable to common shareholders 2,506,296 3,141,680 Dividends to hybrid securities (131,148) (91,756) Net income attributable to common shareholders 2,375,148 3,049,924 Weighted average number of common shares outstanding (Unit: million shares) 735 728 Basic EPS (Unit: Korean Won) 3,230 4,191 (2) The weighted average number of common shares outstanding is as follows (Unit: number of shares, days): For the year ended December 31, 2023 Number of shares Accumulated number of shares outstanding during period Common shares issued at the beginning of the period 728,060,549 265,742,100,385 Treasury stocks (343,991) (125,556,715) Acquisition and retirement of treasury stock etc. (13,500,691) (2,104,222,930) Acquisition of treasury stock (odd-lot stock at comprehensive share exchange) (51,621) (6,504,246) Disposal of treasury stock 1,883,007 171,193,865 Issuance of new shares (comprehensive share exchange) 32,474,711 4,741,307,806 Sub-total (①) 268,418,318,165 Weighted average number of common shares outstanding (②=(①/365)) 735,392,653 For the year ended December 31, 2022 Number of shares Accumulated number of shares outstanding during period Common shares issued at the beginning of the period 728,060,549 265,742,100,385 Treasury stocks (343,991) (125,556,715) Sub-total (①) 265,616,543,670 Weighted average number of common shares outstanding (②=(①/365)) 727,716,558 Diluted EPS is equal to basic EPS because there is no dilution effect for the years ended December 31, 2023 and 2022. WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 173 - 40. CONTINGENT LIABILITIES AND COMMITMENTS (1) Details of guarantees are as follows (Unit: Korean Won in millions): December 31, 2023 December 31, 2022 Confirmed guarantees Guarantee for loans 58,205 39,684 Acceptances 467,964 501,921 Guarantees in acceptances of imported goods 74,916 97,920 Other confirmed guarantees 8,050,815 6,847,713 Sub-total 8,651,900 7,487,238 Unconfirmed guarantees Local letters of credit 161,608 150,075 Letters of credit 2,873,350 3,014,228 Other unconfirmed guarantees 1,516,585 1,144,498 Sub-total 4,551,543 4,308,801 Commercial paper purchase commitments and others 589,858 125,547 Total (*) 13,793,301 11,921,586 (*) Includes financial guarantees of 3,661,656 million won and 3,095,091 million won as of December 31, 2023 and 2022, respectively. (2) Details of loan commitments and others are as follows (Unit: Korean Won in millions): December 31, 2023 December 31, 2022 Loan commitments 126,829,192 118,172,070 Other commitments (*) 7,339,952 7,107,828 (*) As of December 31, 2023 and 2022, the amount of unsecured bills (purchase bills sales) and discounts on electronic short-term bond sales (purchase) are 2,485,853 million won and 2,505,399 million won, respectively. (3) Litigation case Litigation case that the key Group is a defendant in a lawsuit pending (excluding fraud lawsuits and those lawsuits that are filed only to extend the statute of limitation, etc.) are 603 cases (litigation value of 513,863 million Won) and 531 cases (litigation value of 577,128 million Won) as of December 31, 2023 and 2022 respectively, and provisions for litigations are 28,581 million Won and 33,877 million Won. WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 174 - (4) Other commitments 1) As of December 31, 2023, Woori FIS Co., Ltd, a subsidiary, has been provided with a payment guarantee limit of 6,457 million Won in relation to bid guarantees and contract/defect guarantees from the Korean Software Financial Cooperative, but there is no committed amount. In relation to the guarantee, the capital contributions to the Korean Software Financial Cooperative are provided as collateral. In addition, as of December 31, 2023, Seoul Guarantee Insurance Company is providing a payment guarantee of 374 million Won related to the return of subsidy to the daycare center at work. 2) As of December 31, 2023, Woori FIS Co., Ltd, a subsidiary agreed with Shinhan Bank for short- term borrowings of 20 billion Won for one year (2023.11.16.~2024.11.16.), and there is no outstanding balance of short-term borrowings as of December 31, 2023. 3) As of December 31, 2023, Woori Savings bank is provided with a guarantee of 1,593 million Won from Seoul Guarantee Insurance Company in relation to provisional attachment for recovery of loans, etc. 4) As of December 31, 2023, Woori Asset Trust, a subsidiary, has committed to fulfill responsibility for the completion of 43 projects, including a residential-commercial complex in U-dong, Haeundae-gu, Busan. Responsible completion type management land trust is a trust that bears the obligation of responsible completion when the construction company fails to fulfill the obligation of responsible completion, and the obligation to compensate losses to the lending financial institution if Woori Asset Trust fails to fulfill the obligation of responsible completion. As of December 31, 2023, the total amount of PF(Project Financing) loans from PF lending financial institutions invested in the responsible completion type management land trust business is 2,275,634 million Won. Although additional losses may occur in relation to these contracts for liability obligations, these effects were not reflected in the financial statements at the end of the current period because the possibility is not high and the amount of losses cannot be reliably estimated. Meanwhile, Woori Asset Trust Co., Ltd. has failed to fulfill the responsibility of the completion of 5 projects including the Okjeong Knowledge Industry Center in Yangju. The total amount of PF limit from PF lending financial institutions invested in projects is 271,000 million Won and the amount of PF loans is 161,700 million Won. Additionally, Woori Asset Trust Co., Ltd. has exceeded the deadline for responsibility of completion of a commercial facility in Gwangju, Gyeonggi Province. The total amount of PF limit from PF lending financial institutions invested in projects is 61,000 million Won and the amount of PF loans is 43,000 million Won. Also, as of December 31, 2023, Woori Asset Trust may lend a trust account for a part of the total project cost in relation to 24 debt-type land trust contracts including Busan Haeundae Udong Beautique Terrace Hotel and responsible completion management land trust contracts in Gyeongseo-dong, Seo-gu, Incheon, and additional business sites in progress. The maximum loan amount (unused limit) is 113,428 million Won. Whether or not Woori Asset Trust lends a trust account in relation to the relevant businesses is not an unconditional payment obligation, and it is determined by considering overall matters such as the unique account and the fund balance plan of each trust business. 5) Pursuant to some contracts related to asset securitization, the Group utilizes various prerequisites as triggering events causing early redemption, limiting risks that investors bear due to change in asset quality. Breach of such triggering clause leads to an early redemption of the securitized bonds. 6) During the current period, there was an investigation by Fair Trade Commission regarding Loan- To-Value ratio. The Group received the review report but cannot reasonably estimate its impact on financial statements. WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 175 - 41. RELATED PARTY TRANSACTIONS Related parties of the Group as of December 31, 2023 and 2022, and assets and liabilities recognized, guarantees and commitments, major transactions with related parties and compensation to key management for the years ended December 31, 2023 and 2022 are as follows. Please refer to Note 13 for the details of joint ventures and associates. (1) Assets and liabilities from transactions with related parties are as follows (Unit: Korean Won in millions): Related parties Account title December 31, 2023 December 31, 2022 Associates W Service Networks Co., Ltd. Loans 108 120 Deposits due to customers 3,245 3,298 Accrued expenses 7 7 Other liabilities 100 109 Korea Credit Bureau Co., Ltd. Loans 1 2 Deposits due to customers 771 4,450 Accrued expenses 1 - Other liabilities - 40 Korea Finance Security Co., Ltd. Loans 3,228 3,433 Loss allowance (71) (46) Deposits due to customers 1,323 1,764 Other liabilities 6 6 LOTTE CARD Co. Ltd. Loans 12,209 50,000 Account receivables 31 16 Loss allowance (269) (30) Other assets 2 - Deposits due to customers 62,587 35,986 Other liabilities 289 74 K BANK Co., Ltd. Loans 54 3 Account receivables 13 31 Other assets 18 - Other liabilities 214,135 108,156 Others (*1) Loans 65,558 68,660 Loss allowance (61) (34) Other assets 47,828 768 Deposits due to customers 4,212 3,622 Other liabilities 992 119 (*1) Others include IBK KIP Seongjang Dideemdol 1st Private Investment Limited Partnership and etc., as of December 31, 2023 and 2022. WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 176 - (2) Gain or loss from transactions with related parties are as follows (Unit: Korean Won in millions): For the years ended December 31 Related parties Account title 2023 2022 Associates W Service Network Co., Ltd. Other income 35 14 Fees expenses 552 543 Other expenses 1,575 1,907 Korea Credit Bureau Co., Ltd. Interest expenses 9 40 Fees expenses 4,047 3,730 Other expenses 143 139 Korea Finance Security Co., Ltd. Interest income 181 141 Interest expenses 3 3 Provision of allowance for credit loss 26 44 Other expenses 33 52 LOTTE CARD Co., Ltd. Interest income 10 83 Fees income 4,164 7,701 Interest expenses 5,665 1,902 Reversal of allowance for credit loss 455 27 K BANK Co., Ltd. Fees income 190 698 Fees expenses 339 937 Others (*) Interest income 682 713 Fees income 15,295 7,138 Dividend income 1,700 - Other income 4,760 - Interest expenses 9,333 10 Other expenses 836 - Provision of allowance for credit loss 27 92 Reversal of allowance for credit loss - 1 (*) Others include IBK KIP Seongjang Dideemdol 1st Private Investment Limited Partnership and etc., for the years ended December 31, 2023 and 2022. WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 177 - (3) Major loan transactions with related parties for the years ended December 31, 2023 and 2022 are as follows (Unit: Korean Won in millions): For the year ended December 31, 2023 Related parties Beginning balance Loan Collection Others Ending balance (*) Associates W Service Network Co., Ltd. 120 483 495 - 108 Korea Credit Bureau Co., Ltd. 2 12 13 - 1 Korea Finance Security Co., Ltd. 3,433 2,911 3,116 - 3,228 LOTTE CARD Co., Ltd. 50,000 226,318 264,109 - 12,209 K BANK Co., Ltd. 3 218 167 - 54 One Mortgage - 262 247 - 15 ARAM CMC CO.LTD - 41 - - 41 Godo Kaisha Oceanos 1 39,814 - - (1,693) 38,121 Woori Zip 1 11,819 - - (502) 11,317 Woori Zip 2 16,776 - - (713) 16,063 Central Network Solutions Co., Ltd. 251 - 251 - - (*) Payments that occurred for business reasons among related parties are excluded and net increase or decrease was used for limited credit loan. For the year ended December 31, 2022 Related parties Beginning balance Loan Collection Others Ending balance (*) Associates W Service Network Co., Ltd. 20 352 252 - 120 Korea Credit Bureau Co., Ltd. 2 15 15 - 2 Korea Finance Security Co., Ltd. 3,425 2,407 2,399 - 3,433 LOTTE CARD Co., Ltd. 3,750 50,000 3,750 - 50,000 K BANK Co., Ltd. 99 315 411 - 3 Godo Kaisha Oceanos 1 43,033 41,467 43,033 (1,653) 39,814 Woori Zip 1 12,775 - - (956) 11,819 Woori Zip 2 18,132 - - (1,356) 16,776 Central Network Solutions Co., Ltd. - 251 - - 251 (*) Payments that occurred for business reasons among related parties are excluded and net increase or decrease was used for limited credit loan. WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 178 - (4) Details of changes in major deposits due to customers with related parties for the years ended December 31, 2023 and 2022 are as follows (Unit: Korean Won in millions): For the year ended December 31, 2023 Related parties Beginning balance Increase Decrease Ending balance (*) Associates W Service Networks Co., Ltd 1,200 1,000 1,200 1,000 Partner One Value Up I Private Equity Fund 100 - 100 - Korea Credit Bureau Co., Ltd. 3,000 - 3,000 - One Mortgage - 1,200 600 600 (*) Details of payment between related parties, demand deposit due to customers and etc. are excluded. For the year ended December 31, 2022 Related parties Beginning balance Increase Decrease Ending balance (*) Associates W Service Networks Co., Ltd 1,180 1,200 1,180 1,200 Partner One Value Up I Private Equity Fund 329 550 779 100 Korea Credit Bureau Co., Ltd. - 3,000 - 3,000 (*) Details of payment between related parties, demand deposit due to customers and etc. are excluded. (5) There are no major borrowing transactions with related parties for the years ended December 31, 2023 and 2022. (6) Guarantees provided to the related parties are as follows (Unit: Korean Won in millions): Warrantee December 31, 2023 December 31, 2022 Warranty Korea Finance Security Co., Ltd. 632 627 Unused loan commitment Korea Credit Bureau Co., Ltd. 34 33 Unused loan commitment W Service Network Co., Ltd. 72 60 Unused loan commitment K BANK Co., Ltd. 246 297 Unused loan commitment LOTTE CARD Co. Ltd. 498,400 450,000 Unused loan commitment One Mortgage 34 - Unused loan commitment D-Custody Co., Ltd. - 10 Unused loan commitment As of December 31, 2023 and 2022, the recognized payment guarantee provisions are 294 million won and 80 million won, respectively, in relation to the guarantees provided to the related parties above. WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 179 - (7) Amount of commitments with the related parties Warrantee December 31, 2023 December 31, 2022 Warranty IBK KIP Seongjang Dideemdol 1st Private Investment Limited Partnership 4,664 4,664 Securities purchase commitment Woori Seoul Beltway Private Special Asset Fund No.1 34,437 37,146 Securities purchase commitment Woori-Q Corporate Restructuring Private Equity Fund 12,186 12,555 Securities purchase commitment JC Assurance No.2 Private Equity Fund 1,351 1,351 Securities purchase commitment Crevisse Raim Impact 1st Startup Venture Specialist Private Equity Fund 243 325 Securities purchase commitment WooriG Oncorp Corporate support of Major Industry General Type Private Investment Trust (Type 2) - 39 Securities purchase commitment BTS 2nd Private Equity Fund 4,774 6,974 Securities purchase commitment STASSETS FUND III 6,000 13,500 Securities purchase commitment Together Korea Government Private Securities Investment Trust No.3 990,000 990,000 Securities purchase commitment NH Woori Newdeal Growth Alpha Private Equity Fund 1 36,941 - Securities purchase commitment Synaptic Future Growth Private Equity Fund 1 4,389 - Securities purchase commitment Woori Asset Global Partnership Fund No.5 127,500 - Securities purchase commitment WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 180 - (8) Major investment and Recovery transactions The details of major investment and recovery transactions with related parties for the years ended December 31, 2023 and 2022 are as follows (Unit: Korean Won in millions): For the year ended December 31, 2023 Related parties Investment and others (*) Recovery and others (*) Woori G Oncorp Corporate support of Major Industry General Type Private Investment Trust (Type 2) 38 - Woori BIG SATISFACTION SHINJONG MMF 3RD - 441,470 (*) Investment and recovery transactions of associates are described in Note 13.(2) For the year ended December 31, 2022 Related parties Investment and others (*) Recovery and others (*) Woori High Plus Short-term High Graded ESG Bond Sec Feeder Inv Trust 1 - 21,606 Woori High Plus Bond Sec Feeder Inv Trust 3(USD) - 1,052 Woori BANKPLUS IPO 10 FEEDER FUND 2(BALANCED BOND) 200 - Woori Two-year Bond Securities Investment Trust 2(Bond) - 213 Woori China Mainland Stock Securities Investment Trust H(Securities) - 443 Woori Long-term government bond securities Investment Trust No.1 - 1,951 Woori Republic of Korea Treasury Bond Active ETF(Bond) 3,000 - Woori K-New Opening Target Return Securities Investment Trust(Equity) 200 - Woori 2023 Maturity Securities Investment Trust(Bond) 200 - Woori 2024 Maturity Securities Investment Trust 1(Bond) 200 - Woori BIG SATISFACTION SHINJONG MMF 3RD 320,000 - Woori MULTI RETURN PRIVATE EQUITY 1 - 8,559 Woori 2024 December Maturity Securities Investment Trust 1(Bond) 200 - Woori Two-year Bond Securities Investment Trust 3(Bond) - 209 Woori G Oncorp Corporate support of Major Industry General Type Private Investment Trust (Type 2) 630 - (*) Investment and recovery transactions of associates are described in Note 13.(2) (9) Compensation for key management is as follows (Unit: Korean Won in millions): For the years ended December 31 2023 2022 Short-term employee salaries 22,626 21,990 Retirement benefit service costs 1,160 937 Share-based compensation 5,474 4,234 Total 29,260 27,161 Key management includes executives and directors of Woori Financial Group and major subsidiaries, and also includes CEO of other subsidiaries. Outstanding assets from transactions with key management amount to 3,932 million won and 3,620 million won, as of December 31, 2023 and 2022 respectively and with respect to the assets, the Group has not recognized any allowance nor related impairment loss due to credit losses. Also, liabilities from transaction with key management amount to 34,054 million won and 12,660 million won, respectively, as of December 31, 2023 and 2022. WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 181 - 42. TRUST ACCOUNTS (1) Trust accounts of the Woori Bank are as follows (Unit: Korean Won in millions): (2) Receivables and payables between the Woori Bank and trust accounts are as follows (Unit: Korean Won in millions): December 31, 2023 December 31, 2022 Receivables: Trust fees receivables 48,383 42,337 Payables: Deposits due to customers 166,241 170,417 Borrowings from trust accounts 3,769,913 1,804,847 Total 3,936,154 1,975,264 (3) Significant transactions between the Woori Bank and trust accounts are as follows (Unit: Korean Won in millions): For the years ended December 31 2023 2022 Revenue: Trust fees 141,314 131,656 Termination fees 1,116 1,158 Total 142,430 132,814 Expense: Interest expenses on deposits due to customers 957 619 Interest expenses on borrowings from trust accounts 88,099 38,583 Total 89,056 39,202 Total assets Operating income December 31, 2023 December 31, 2022 For the years ended December 31 2023 2022 Trust accounts 75,636,483 71,677,258 2,296,627 1,121,069 WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 182 - (4) Principal guaranteed trusts and principal and interest guaranteed trusts are as follows; 1) The carrying amount of principal guaranteed trusts and principal and interest guaranteed trusts that Woori Bank provides are as follows (Unit: Korean Won in millions): December 31, 2023 December 31, 2022 Partial principal guaranteed trusts Personal trust 7,767 8,230 Corporate trust 217 446 Deposit purpose 1,515 1,551 Sub-total 9,499 10,227 Principal guaranteed trusts Old-age pension trusts 2,582 2,790 Personal pension trusts 429,068 460,839 Pension trusts 642,756 687,971 Retirement trusts 26,082 26,563 New personal pension trusts 6,441 6,792 New old-age pension trusts 892 950 Sub-total 1,107,821 1,185,905 Principal and interest guaranteed trusts Development trusts 19 19 Unspecified money trusts 334 335 Sub-total 353 354 Total 1,117,673 1,196,486 WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 183 - 43. LEASES (1) Lessor 1) Finance lease ① The total investment in finance lease and the present value of the minimum lease payments to be recovered are as follows (Unit: Korean Won in millions): December 31, 2023 Total investment in lease Net investment in lease Within one year 226,242 208,121 After one year but within two years 330,524 308,793 After two years but within three years 446,742 412,015 After three years but within four years 364,917 323,331 After four years but within five years 127,001 109,675 After five years 24 24 Total 1,495,450 1,361,959 December 31, 2022 Total investment in lease Net investment in lease Within one year 160,181 146,749 After one year but within two years 231,075 215,497 After two years but within three years 366,599 338,709 After three years but within four years 501,034 452,099 After four years but within five years 368,420 314,696 After five years 19 18 Total 1,627,328 1,467,768 ② The unrealized interest income of the finance lease is as follows. (Unit: Korean Won in millions) December 31, 2023 December 31, 2022 Total investment in lease 1,495,450 1,627,328 Net investment in lease 1,361,959 1,467,768 Present value of minimum lease payments 1,361,959 1,467,768 Present value of unguaranteed residual value - - Unearned interest income 133,491 159,560 WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 184 - 2) Operating lease ① The details of operating lease assets are as follows (Unit: Korean Won in millions): December 31, 2023 December 31, 2022 Prepaid lease assets 20,538 3,121 Operating lease assets Acquisition cost 4,199,535 3,320,275 Accumulated depreciation (913,609) (729,818) Net carrying value 3,285,926 2,590,457 Total 3,306,464 2,593,578 ② The details of changes in operating lease assets as of December 31, 2023 are as follows and there is no details of changes in operating lease assets as of December 31, 2022 (Unit: Korean Won in millions) December 31, 2023 December 31, 2022 Beginning balance 2,590,457 1,778,308 Acquisition 1,336,203 1,321,251 Disposal (202,542) (138,189) Depreciation (462,394) (388,895) Others 24,202 17,982 Ending balance 3,285,926 2,590,457 ③ The future lease payments to be received under the lease contracts are as follows (Unit: Korean Won in millions) December 31, 2023 December 31, 2022 Within one year 748,283 567,998 After one year but within two years 681,591 526,899 After two years but within three years 517,967 420,244 After three years but within four years 286,677 275,080 After four years but within five years 121,621 86,606 Total 2,356,139 1,876,827 ④ There are no adjusted lease payments recognized as profit or loss for the years ended December 31, 2023 and 2022. WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 185 - (2) Lessee 1) The future lease payments under the lease contracts are as follows (Unit: Korean Won in millions): December 31, 2023 December 31, 2022 Lease payments Within one year 206,798 170,781 After one year but within five years 146,755 152,145 After five years 25,356 33,007 Total 378,909 355,933 2) Total cash outflows from lease are as follows (Unit: Korean Won in millions): For the years ended December 31 2023 2022 Total cash outflows from lease 195,015 192,540 3) Details of lease payments that are not included in the measurement of lease liabilities due to the fact that they are short-term leases or leases for which the underlying asset is of low value are as follows (Unit: Korean Won in millions): For the years ended December 31 2023 2022 Lease payments for short-term leases 936 1,469 Lease payments for which the underlying asset is of low value 1,369 1,316 Total 2,305 2,785 Variable lease payments that were not included in the measurement of lease liabilities for the years ended December 31, 2023 and 2022 were 32,037 million Won and 5,470 million Won. 44. BUSINESS COMBINATION (1) General As of March 23, 2023, the Group acquired 53.9% interest(excluding treasury stocks, 52.0% interest including treasury stocks) in Daol Investment CO., Ltd. and changed the name of Daol Investment CO., Ltd. to Woori Venture Partners. The main reasons for the business combination are to maximize synergy between the consolidated subsidiaries and to strengthen the non- banking business portfolio. If Woori Venture Partners had been acquired from January 1, 2023, the consolidated statement of comprehensive income would have shown operating profit and net income of Woori Venture Partners for 6,495 million Won and 7,673 million Won, respectively. WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 186 - (2) Identifiable net assets Identified assets and liabilities as of the acquisition date are as follows (Unit: Korean Won in millions): Accounts March 31, 2023 Assets Cash and cash equivalent 2,879 Financial assets at FVTPL 38,385 Loans and other financial assets at amortized cost(*1) 124,904 Investments in joint ventures and associates 136,930 Property, Plant and Equipment 20,324 Intangible assets(*2) 21,447 Current tax assets 33 Others 73 Sub-total 344,975 Liabilities Current tax liabilities 7,938 Deferred tax liabilities 11,593 Other financial liabilities 1,000 Other liabilities 14,971 Sub-total 35,502 Fair value of net identifiable assets 309,473 (*1) The acquired financial assets at amortized cost were estimated at fair value. The contractual total of the financial assets at amortized cost of Woori Venture Partners is 127,384 million Won, and the contractual cash flows that are not expected to be recovered as of the acquisition date are 2,480 million Won. (*2) The intangible assets include 18,880 million Won in customer relationships as a result of business combination and were valued at fair value through the Multi-period excess earning method (MEEM) as they were judged separately identifiable intangible assets. Multi-period excess earning method is a method to estimate the future cash flows generated by each intangible asset and to discount the cash flows generated purely by that intangible asset to its present value by deducting the portion of the asset’s contribution to that cash flow generation. If, within one year of the acquisition date, new information obtained about the facts and circumstances that existed at the acquisition date requires the adjustment of the amounts recognized at the acquisition date, or the recognition of additional provisions existing at the acquisition date, the accounting for the business combination will be adjusted. WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023 AND 2022 - 187 - (3) Goodwill Recognized goodwill as a result of business combination are as follows (Unit: Korean Won in million): Woori Venture Partners Transfer price 212,522 Fair value of net identifiable asset 309,473 Non-controlling interest (*) 138,478 Goodwill 41,527 (*) Non-controlling interests were recognized at fair value applying the closing price on the acquisition date of Woori Venture Partners. In the event of a business combination, the consideration transferred includes the premium paid to acquire Woori Venture Partners which results in goodwill. In addition, the consideration paid for the business combination includes expected synergies, revenue growth, and the amount related to future market growth. The Group also acquired a relationship with a customer of Woori Venture Partners as part of the acquisition. These relationships with customers were recognized separately from goodwill because they met the separability criteria to meet the recognition requirements for intangible assets. (4) Net cash outflow due to business combination Details of net cash outflows due to business combination are as follows (Unit: Korean Won in million): Woori Venture Partners Consideration paid in cash 212,522 Acquired cash and cash equivalents 2,879 Deduction in total 209,643 45. EVENTS AFTER THE REPORTING PERIOD (1) On October 26, 2023, Woori Asset Management Corp (the surviving company) and Woori Global Asset Management Co., Ltd. (the merged company), subsidiaries of the Group, entered into a merger agreement. On January 10, 2024, the shareholders' meeting to approve the merger agreement and the board of directors to replace the shareholders' meeting were held and the resolution was made. The merger registration date is January 29, 2024, and the Group's percentage of ownership in Woori Asset Management Corp after the merger is 77.5% (3,717,154 shares). (2) On February 16, 2024, Woori Asset Management Corp, the subsidiary of the Company, held the Board of Directors meeting and has declared the capital increase amount of 209,952 million Won, and the Company has decided to participate in the capital increase amount of 200,000 million Won, corresponding to its ownership (95.3%) based on voting rights. 152, Teheran-ro, Gangnam-gu, Seoul 06236 (Yeoksam-dong, Gangnam Finance Center 27th Floor) Republic of Korea Independent Auditor’ Report on Internal Control over Financial Reporting for Consolidation Purposes Based on a report originally issued in Korean To the Board of Directors and Shareholders Woori Financial Group Inc.: Opinion on Internal Control over Financial Reporting for Consolidation Purposes We have audited Woori Financial Group Inc. and its subsidiaries (“the Group”)’ internal control over financial reporting (“ICFR”) for consolidation purposes as of December 31, 2023 based on the criteria established in the Conceptual Framework for Designing and Operating ICFR (“ICFR Design and Operation Framework”) issued by the Operating Committee of Internal Control over Financial Reporting in the Republic of Korea (the “ICFR Committee”). In our opinion, the Group maintained, in all material respects, effective internal control over financial reporting for consolidation purposes as of December 31, 2023, based on ICFR Design and Operation Framework. We also have audited, in accordance with Korean Standards on Auditing (KSAs), the consolidated financial statements of the Group, which comprise the consolidated statement of financial position as of December 31, 2023, the consolidated statements of comprehensive income, changes in equity and cash flows for the year then ended, and notes, comprising of material accounting policy information and other explanatory information, and our report dated March 6, 2024 expressed an unmodified opinion on those consolidated financial statements. Basis for Opinion on Internal Control over Financial Reporting for Consolidation Purposes We conducted our audit in accordance with KSAs. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of Internal Control over Financial Reporting for Consolidation Purposes section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the internal control over financial reporting for consolidation purposes in Republic of Korea, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Responsibilities of Management and Those Charged with Governance for the Internal Control over Financial Reporting for Consolidation Purposes The Group’s management is responsible for designing, operating and maintaining effective internal control over financial reporting for consolidation purposes and for its assessment of the effectiveness of internal control over financial reporting for consolidation purposes, included in the accompanying ‘Operating Status Report of Internal Control over Financial Reporting for Consolidation Purposes.’ Those charged with governance have the responsibilities for overseeing the Group’s internal control over financial reporting for consolidation purposes. Auditor’s Responsibilities for the Audit of the Internal Control over Financial Reporting for Consolidation Purposes Our responsibility is to express opinion on the Group’s internal control over financial reporting for consolidation purposes based on our audit. We conducted our audit in accordance with KSAs. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting for consolidation purposes was maintained in all material respects. Our audit of internal control over financial reporting for consolidation purposes included obtaining an understanding of internal control over financial reporting for consolidation purposes, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Definition and Limitations of Internal Control over Financial Reporting for Consolidation Purposes An entity’s internal control over financial reporting for consolidation purposes is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of the consolidated financial statements for external purposes in accordance with Korean International Financial Reporting Standards (“K-IFRS”). A Group’s internal control over financial reporting for consolidation purposes includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the group; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of consolidated financial statements in accordance with K-IFRS, and that receipts and expenditures of the group are being made only in accordance with authorizations of management and directors of the group; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the group’s assets that could have a material effect on the consolidated financial statements. Because of its inherent limitations, internal control over financial reporting for consolidation purposes may not prevent or detect misstatements in the consolidated financial statements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. The engagement partner on the audit resulting in this independent auditor’s report is Jae-Beom Choi. KPMG Samjong Accounting Crop. Seoul, Korea March 6, 2024 This report is effective as of March 6, 2024, the audit report date. Certain subsequent events or circumstances, which may occur between the audit report date and the time of reading this report, could have a material impact on the internal control over financial reporting. Accordingly, the readers of the audit report should understand that the above audit report has not been updated to reflect the impact of such subsequent events or circumstances, if any.