Overview We were established as a new financial holding company on September 29, 2008 pursuant to a “comprehensive stock transfer” under Korean law, whereby holders of the common stock of Kookmin Bank and certain of its subsidiaries transferred all of their shares to us in return for shares of our common stock. We were established pursuant to the Financial Holding Company Act, which was enacted in October 2000 and which, together with associated regulations and a related Enforcement Decree, has enabled banks and other financial institutions, including insurance companies, investment trust companies, credit card companies and securities companies, to be organized and managed under the auspices of a single financial holding company. Our legal and commercial name is KB Financial Group Inc. Our registered office and principal executive offices are located at 26, Gukjegeumyung-ro 8-gil, Yeongdeungpo-gu, Seoul 07331, Korea. Our telephone number is +82-2-2073-7114. Our agent in the United States, Kookmin Bank, New York Branch, is located at 565 Fifth Avenue, 24th Floor, New York, NY 10017. Its telephone number is (212) 697-6100. The address of our English website is https://www.kbfg.com/eng/index.jsp. The U.S. Securities and Exchange Commission maintains a website (http://www.sec.gov), which contains reports, proxy and information statements and other information regarding issuers that file electronically with the U.S. Securities and Exchange Commission. History of the Former Kookmin Bank The former Kookmin Bank was established by the Korean government in 1963 under its original name of Citizens National Bank under the Citizens National Bank Act of Korea with majority government ownership. Under this Act, we were limited to providing banking services to the general public and to small- and medium-sized enterprises. In September 1994, we completed our initial public offering in Korea and listed our shares on the KRX KOSPI Market. In January 1995, the Citizens National Bank Act of Korea was repealed and replaced by the Repeal Act of the Citizens National Bank Act. Our status was changed from a specialized bank to a nationwide commercial bank and in February 1995, we changed our name to Kookmin Bank. The Repeal Act allowed us to engage in lending to large businesses. History of H&CB H&CB was established by the Korean government in 1967 under the name Korea Housing Finance Corporation. In 1969, Korea Housing Finance Corporation became the Korea Housing Bank pursuant to the Korea Housing Bank Act. H&CB was originally established to provide low and middle income households with long-term, low-interest mortgages in order to help them purchase their own homes, and to promote the increase of housing supply in Korea by providing low-interest housing loans to construction companies. Until 1997 when 31 Table of Contents the Korea Housing Bank Act was repealed, H&CB was the only entity in Korea allowed to provide mortgage loans with a term of longer than ten years. H&CB also had the exclusive ability to offer housing-related deposit accounts offering preferential rights to subscribe for newly-built apartments. Merger of the Former Kookmin Bank and H&CB Effective November 1, 2001, the former Kookmin Bank and H&CB merged into a new entity named Kookmin Bank. This merger resulted in Kookmin Bank becoming the largest commercial bank in Korea. Kookmin Bank’s ADSs were listed on the New York Stock Exchange on November 1, 2001 and its common shares were listed on the KRX KOSPI Market on November 9, 2001. Establishment of KB Financial Group We were established on September 29, 2008 pursuant to a “comprehensive stock transfer” under Article 360-15 of the Korean Commercial Code, whereby holders of the common stock of Kookmin Bank and certain of its subsidiaries transferred all of their shares to us, a new financial holding company, and in return received shares of our common stock. In the stock transfer, each holder of one share of Kookmin Bank common stock received one share of our common stock, par value ￦5,000 per share. Holders of Kookmin Bank ADSs and global depositary shares, each of which represented one share of Kookmin Bank common stock, received one of our ADSs for every ADS or global depositary share they owned. In addition, holders of the common stock of certain of Kookmin Bank’s subsidiaries transferred all of their shares to us and, as consideration for such transferred shares, received shares of our common stock in accordance with the specified stock transfer ratio applicable to each such subsidiary. Following the completion of the stock transfer, Kookmin Bank and these subsidiaries — KB Investment & Securities Co., Ltd., KB Asset Management Co., Ltd., KB Real Estate Trust Co., Ltd., KB Investment Co., Ltd., KB Futures Co., Ltd., KB Credit Information Co., Ltd., and KB Data Systems Co., Ltd. — became our wholly-owned subsidiaries. The purpose of the stock transfer and our establishment as a financial holding company was to reorganize the different businesses of Kookmin Bank and its subsidiaries under a holding company structure, the adoption of which we believed would: • assist us in creating an integrated system that facilitates the sharing of customer information and the development of integrated products and services by the different businesses within our subsidiaries; • assist us in expanding our business scope to include new types of business with higher profit margins; • enhance our ability to pursue strategic investments or reorganizations by way of mergers, acquisitions, spin-offs or other means; • maximize our management efficiency; and • further enhance our capacity to expand our overseas operations. Following the stock transfer, our common stock was listed on the KRX KOSPI Market on October 10, 2008 and our ADSs were listed on the New York Stock Exchange on September 29, 2008. Item 4.B. Business Overview Business We are one of the largest financial holding companies in Korea, in terms of consolidated total assets, and our operations include Kookmin Bank, one of the leading commercial banks in Korea. Our subsidiaries collectively engage in a broad range of businesses, including commercial banking, credit cards, asset management, non-life and life insurance, capital markets activities and international banking and finance. As of December 31, 2025, we had consolidated total assets of ￦798 trillion, consolidated total deposits of ￦462 trillion and consolidated total equity of ￦61 trillion. 32 Table of Contents As part of our commercial banking activities, we provide credit and related financial services to individuals, small- and medium-sized enterprises and large corporate customers. We also provide a full range of deposit products and related services to both individuals and enterprises of all sizes. We provide these services predominantly through Kookmin Bank. By their nature, our core consumer and small- and medium-sized enterprise operations place a high premium on customer access and convenience. Our combined banking network of 771 branches as of December 31, 2025, one of the most extensive in Korea, provides a solid foundation for our business and is a major source of our competitive strength. This network provides us with a large, stable and cost effective funding source, enables us to provide our customers convenient access and gives us the ability to provide the customer attention and service essential to conducting our business, particularly in an increasingly competitive environment. Our branch network is supplemented by our advanced digital platforms, including KB Star Banking. As of December 31, 2025, we had a customer base of approximately 39.0 million retail customers, which represented over one-half of the Korean population. The following table sets forth the principal components of our lending business as of the dates indicated. As of December 31, 2025, retail loans and credit card loans and receivables accounted for 45.2% of our total loan portfolio: As of December 31, 2024 2025 (in billions of Won, except percentages) Retail Mortgage and home equity(1) ￦ 136,130 28.5 % ￦ 142,805 28.7 % Other consumer(2) 57,673 12.1 58,840 11.8 Total retail 193,803 40.6 201,645 40.5 Credit card 23,443 4.9 23,111 4.7 Corporate 223,603 46.8 238,431 47.9 Foreign 36,856 7.7 34,197 6.9 Total loans ￦ 477,705 100.0 % ￦ 497,384 100.0 % (1) Includes ￦5,170 billion and ￦4,205 billion of overdraft loans secured by real estate in connection with home equity loans as of December 31, 2024 and 2025, respectively. (2) Includes ￦11,210 billion and ￦12,109 billion of overdraft loans as of December 31, 2024 and 2025, respectively. We provide a full range of personal lending products and retail banking services to individual customers, including mortgage loans. We are the largest private sector mortgage lender in Korea. Lending to small- and medium-sized enterprises is the single largest component of our non-retail credit portfolio and represents a widely diversified exposure to a broad spectrum of the Korean corporate community, both by type of lending and type of customer, with one of the categories being collateralized loans to SOHO customers that are among the smallest of the small- and medium-sized enterprises. The volume of our loans to small- and medium-sized enterprises requires a customer-oriented approach that is facilitated by our large and geographically diverse branch network. With respect to large corporate customers, we continue to seek to maintain and expand quality relationships by providing them with an increasing range of fee-related services. Strategy Our strategic focus is to become a world-class financial group that achieves sustainable growth amidst a rapidly evolving financial landscape and an increasingly digitalized environment. We plan to continue to solidify 33 Table of Contents our market position as Korea’s leading financial group, enhance our ability to provide comprehensive financial services to our retail and corporate customers and strengthen our overseas operating platform and network. In addition, we continually strive to achieve our goal of creating “a happier life and a better world” through a customer-centric management philosophy. We believe our strong market position in the commercial banking area in Korea is an important competitive advantage, which will enable us to compete more effectively based on convenient delivery, product breadth and differentiation, and service quality while focusing on our profitability. The key elements of our strategy are as follows: Providing comprehensive financial services and maximizing synergies among our subsidiaries through our financial holding company structure We believe the Korean financial services market has been undergoing and will continue to undergo significant change, resulting from, among other things, fluctuations in the Korean and global economy and the evolving social landscape in Korea, including the acceleration of population aging in Korea, the spread of artificial intelligence usage and the growth of the digital asset ecosystem. In the context of such changes, we plan to become a comprehensive financial services provider capable of offering a full range of products and services to our large existing base of retail and corporate customers, as well as a global firm that can effectively compete with leading international financial institutions. We believe our financial holding company structure gives us a competitive advantage over commercial banks and unaffiliated financial services providers by: • allowing us to offer a more extensive range of financial products and services; • enabling us to share customer information, which is not permitted outside a financial holding company structure, thereby enhancing our risk management capabilities; • enhancing our ability to reduce costs in areas such as back-office processing and procurement; and • enabling us to raise and manage capital on a centralized basis. Identifying, targeting and marketing to attractive customer segments and providing superior customer value and service to such segments In recent years, rather than focusing on developing products and services to satisfy the overall needs of the general population, we have increasingly targeted specific market segments in Korea that we expect to generate superior growth and profitability. For example, we have made it a priority to focus on wealth management solutions for high net worth and ultra-high net worth individuals, who seek more personalized and sophisticated financial services to manage and grow their assets. We will continue to implement a targeted marketing approach that seeks to identify the most attractive customer segments and to develop strategies to build market share in those segments. In particular, we intend to increase our “wallet share” of existing high net worth customers by using our advanced customer relationship management technology to better identify and meet the needs of our most creditworthy customers, on whom we intend to concentrate our marketing efforts. For example, as part of this strategy, we operate a “priority customer” program called KB Star Club through seven of our subsidiaries, Kookmin Bank, KB Securities, KB Insurance, KB Kookmin Card, KB Life Insurance, KB Capital and KB Savings Bank. We select and classify KB Star Club customers based on their transaction history with the seven entities and provide such customers with preferential treatment in various areas, including interest rates and transaction fees, depending upon how they are classified. We also provide private banking services, including wealth management services through our exclusive brand “Gold & Wise,” to increase our share of the high net worth customer market and in turn increase our profitability and strengthen our position in retail banking. 34 Table of Contents We are also focusing on attracting and retaining creditworthy customers by offering more differentiated fee-based products and services that are tailored to meet their specific needs. The development and marketing of our products and services are, in part, driven by customer segmentation to ensure that we meet the needs of each customer segment. For instance, we continue to develop hybrid financial products with enhanced features, including various deposit products and investment products, for which consumer demand has increased in recent years. We are also focusing on addressing the needs of our customers by providing the highest-quality products and services and developing an open-architecture strategy, which allows us to sell such products through one of the largest branch networks in Korea. In short, we aim to offer our customers a convenient one-stop financial services destination where they can meet their traditional retail and corporate banking requirements, as well as find a broad array of fee-based products and services tailored to address more specific financial needs, including in investment banking, securities brokerage, insurance and wealth management. We believe such differentiated, comprehensive services and cross-selling will not only enhance customer loyalty but also increase profitability. One of our key customer-related strategies continues to be creating greater value and better service for our customers. We intend to continue improving our customer service, including through: • Improved customer relationship management technology. Management has devoted substantial resources toward development of our customer relationship management system, which is designed to provide our employees with the information needed to continually improve the level of service and incentives offered to our preferred customers. Our integrated customer relationship system allows for better customer management and streamlines our customer reward system. We have also developed state-of-the-art call centers, mobile applications and online Internet capabilities to provide shorter response times to customers seeking information or to execute transactions. Furthermore, we are focused on improving our customer channels to offer the same quality of service for both our in-branch and non-face-to-face interactions, including online platforms and mobile banking. Our goals are to continually focus on improving customer service to satisfy our customers’ needs through continuing efforts to deliver new and improved services and to upgrade our customer relationship management system to provide the best possible service to our customers in the future. • Enhanced distribution channels. We also believe we can improve customer retention and usage rates by increasing the range of products and services we offer and by developing a differentiated, multi-channel distribution network, including branches, digital platforms and call centers. We are committed to leveraging advanced technology, including artificial intelligence technology, across such channels to offer more efficient and personalized services, ensuring that we meet the evolving expectations of our customers. We believe that our leading market position in the commercial banking area in Korea gives us a competitive advantage in developing and enhancing our distribution capabilities. Focusing on expanding and improving credit quality in our corporate lending business and increasing market share in the corporate financial services market We plan to focus on corporate lending as one of our core businesses through attracting top-tier corporate customers and providing customized and distinctive products and services to build our position as a leading service provider in the Korean corporate financial market. To increase our market share in providing financial services to the corporate market, we intend to: • promote a more balanced and strengthened portfolio with respect to our corporate business by developing our large corporate customer base and utilizing our improved credit management operations to better evaluate new large corporate and small- and medium-sized enterprise customers; • develop and sell more varied corporate financial products, consisting of transactional banking products which provide higher margin and less risk; 35 Table of Contents • generate more fee income from large corporate customers through business-to-business transactions, foreign exchange transactions and derivative and other investment products, as well as investment banking services; • strengthen our marketing system based on our accumulated expertise in order to attract top-tier corporate customers; • focus on enhancing our channel network in order to provide the best service by strengthening our corporate customer management; and • further develop and train our core professionals with respect to this market, including through programs such as the “Career Development Path.” Strengthening internal risk management capabilities We believe that ensuring strong asset quality through effective credit risk management is critical to maintaining stable growth and profitability and risk management will continue to be one of our key focus areas. One of our highest priorities is to improve our asset quality and more effectively price our lending products to take into account inherent credit risk in our portfolio. Our goal is to maintain the soundness of our credit portfolio, profitability and capital base. To this end, we intend to continue to strengthen our internal risk management capabilities by tightening our underwriting and management policies and improving our internal compliance policies. To accomplish this objective, we have undertaken the following initiatives: • Strengthening underwriting procedures with advanced credit scoring techniques. We have centralized our credit management operations into our Credit Management and Analysis Group. Through such centralization, we aim to enhance our credit management expertise and improve our system of checks-and-balances with respect to our credit portfolio. We have also improved our ability to evaluate the credit of our small- and medium-sized enterprise customers through assigning experienced credit officers to our regional credit offices. We also require the same officer to evaluate, review and monitor the outstanding loans and other credits with respect to a customer, which we believe enhances the expertise and improves the efficiency and accountability of such officer, while enabling us to maintain a consistent credit policy. We have also, as a general matter, implemented enhanced credit analysis and scoring techniques, which we believe will enable us to make better-informed decisions about the credit we extend and improve our ability to respond more quickly to incipient credit problems. We are also focusing on enhancing our asset quality through improvement of our early monitoring systems and collection procedures. • Improving our internal compliance policy and ensuring strict application in our daily operations. We have improved our monitoring capabilities with respect to our internal compliance by providing training and educational programs to our management and employees. We have also implemented strict compliance policies to maintain the integrity of our risk management system. Cultivating a performance-based, customer-oriented culture that emphasizes market best practices We believe a strong and dedicated workforce is critical to our ability to offer our customers the highest quality financial services and is integral to our goal of maintaining our position as one of Korea’s leading financial services providers. In the past, we have dedicated significant resources to develop and train our core professionals, and we intend to continue to enhance the productivity of our employees, including by regularly sponsoring in-house training and educational programs. We have also been seeking to cultivate a performance-based culture to create a work environment where members of our staff are incentivized to maximize their potential and in which our employees are directly rewarded for superior performance. We intend to maintain a professional workforce whose high quality of customer service reflects our goal to achieve and maintain global best practice standards in all areas of operations. 36 Table of Contents Retail Banking Due to Kookmin Bank’s history and development as a retail bank and the know-how and expertise we have acquired from our activities in that market, retail banking has been and will continue to remain one of our core businesses. Our retail banking activities consist primarily of lending and deposit-taking. Lending Activities We offer various loan products that target different segments of the population, with features tailored to each segment’s financial profile and other characteristics. The following table sets forth the balances and the percentage of our total retail lending represented by the categories of our retail loans as of the dates indicated: As of December 31, 2024 2025 (in billions of Won, except percentages) Retail: Mortgage and home equity loans ￦ 136,130 70.2 % ￦ 142,805 70.8 % Other consumer loans(1) 57,673 29.8 58,840 29.2 Total ￦ 193,803 100.0 % ￦ 201,645 100.0 % (1) Excludes credit card loans, but includes overdraft loans. Our retail loans consist of: • Mortgage loans, which are loans made to customers to finance home purchases, construction, improvements or rentals; and home equity loans, which are loans made to our customers secured by their homes to ensure loan repayment. We also provide overdraft loans in connection with our home equity loans. • Other consumer loans, which are loans made to customers for any purpose (other than mortgage and home equity loans). These include overdraft loans, which are loans extended to customers to cover insufficient funds when they withdraw funds from their demand deposit accounts with us in excess of the amount in such accounts up to a limit established by us. For secured loans, including mortgage and home equity loans, our policy is to lend up to 100% of the adjusted collateral value (except in areas of high speculation designated by the government where we generally limit our lending to 40% of the appraised value of collateral) minus the value of any lien or other security interests that are prior to our security interest. In calculating the adjusted collateral value for real estate, we use the appraisal value of the collateral multiplied by a factor, generally between 60% to 70%. This factor varies depending upon the location and use of the real estate and is established in part by taking into account court-supervised auction prices for nearby properties. A borrower’s eligibility for our mortgage loans depends on the value of the mortgage property, the appropriateness of the use of proceeds and the borrower’s creditworthiness. A borrower’s eligibility for home equity loans is determined by the borrower’s credit and the value of the property, while the borrower’s eligibility for other consumer loans is primarily determined by the borrower’s credit. If the borrower’s credit deteriorates, it may be difficult for us to recover the loan. As a result, we review the borrower’s creditworthiness, collateral value, credit scoring and third party guarantees when evaluating a borrower. In addition, to reduce the interest rate of a loan or to qualify for a loan, a borrower may provide collateral, deposits or guarantees from third parties. 37 Table of Contents Mortgage and Home Equity Lending The housing finance market in Korea is divided into public sector and private sector lending. In the public sector, two government entities, the National Housing and Urban Fund and the National Agricultural Cooperative Federation, are responsible for most of the mortgage lending. Private sector mortgage and home equity lending in Korea has expanded substantially in recent years. We provide customers with a number of mortgage and home equity loan products that have flexible features, including terms, repayment schedules, amounts and eligibility for loans, and we offer interest rates on a commercial basis. The maximum term of mortgage loans is 50 years and the majority of our mortgage loans have long-term maturities, which may be renewed. Non-amortizing home equity loans have a maturity of one to five years and home equity loans subject to amortization of principal may have a maximum term of up to 50 years. As of December 31, 2025, we had ￦31,557 billion of amortizing home equity loans, representing 98.8% of our total home equity loans, and ￦389 billion of non-amortizing home equity loans, representing 1.2% of our total home equity loans. Any customer is eligible for a mortgage or an individual home equity loan regardless of whether it participates in one of our housing related savings programs and so long as that customer is not barred by regulation from obtaining a loan because of bad credit history. However, customers with whom we frequently transact business and provide us with significant revenue receive preferential interest rates on loans. As of December 31, 2025, 51.8% of our mortgage loans were secured by residential property which is the subject of the loan, 25.7% of our mortgage loans were guaranteed by the Housing Finance Credit Guarantee Fund, a government housing-related entity, and the remaining 22.5% of our mortgage loans, contrary to general practices in the United States, were unsecured (although the use of proceeds from these loans is restricted to financing of home purchases and some of these loans are guaranteed by a third party). One reason that a relatively high percentage of our mortgage loans are unsecured is that we, along with other Korean banks, provide advance loans to borrowers for the down payment of new housing (particularly apartments) that is in the process of being built. Once construction is completed, which may take several years, these mortgage loans become secured by the new housing purchased by these borrowers. For the year ended December 31, 2025, the average initial loan-to-value ratio of our mortgage loans, which is a measure of the amount of loan exposure to the appraised value of the security collateralizing the loan, was approximately 49.7%. There are three reasons that our loan-to-value ratio is relatively lower (as is the case with other Korean banks) compared to similar ratios in other countries, such as the United States. The first reason is that housing prices are high in Korea relative to average income, so most people cannot afford to borrow an amount equal to the entire value of their collateral and make interest payments on such an amount. The second reason relates to the “jeonsae” system, through which people provide a key money deposit while residing in the property prior to its purchase. At the time of purchase, most people use the key money deposit as part of their payment and borrow the remaining amount from Korean banks, which results in a loan that will be for an amount smaller than the appraised value of the property for collateral and assessment purposes. The third reason is that Korean banks discount the appraised value of the borrower’s property for collateral and assessment purposes so that a portion of the appraised value is reserved in order to provide recourse to a renter who lives at the borrower’s property. This is in the event that the borrower’s property is seized by a creditor, and the renter is no longer able to reside at that property. See “Item 3.D. Risk Factors—Other risks relating to our business—A decline in the value of the collateral securing our loans and our inability to realize full collateral value may adversely affect our credit portfolio.” 38 Table of Contents The following table sets forth our unsecured and secured mortgage loans and home equity loans as of December 31, 2024 and 2025, based on their loan classification categories under IFRS and our internal credit ratings for loans (which are described in Note 4.2.4 of the notes to our consolidated financial statements): As of December 31, 2024 Stage 1 Stage 2 Stage 3 Total Grade 1 Grade 2 Grade 3 Grade 4 Grade 5 (in billions of Won) Mortgage: Secured(1) ￦ 90,608 ￦ 1,023 ￦ 124 ￦ 5 ￦ 10 ￦ 6,538 ￦ 189 ￦ 98,497 Unsecured 3,390 14 — — — 59 6 3,469 Home Equity: Secured 31,703 232 73 3 1 2,076 76 34,164 Unsecured — — — — — — — — Total ￦ 125,701 ￦ 1,269 ￦ 197 ￦ 8 ￦ 11 ￦ 8,673 ￦ 271 ￦ 136,130 As of December 31, 2025 Stage 1 Stage 2 Stage 3 Total Grade 1 Grade 2 Grade 3 Grade 4 Grade 5 (in billions of Won) Mortgage: Secured(1) ￦ 100,059 ￦ 877 ￦ 89 ￦ 11 ￦ 6 ￦ 6,199 ￦ 207 ￦ 107,448 Unsecured 3,204 14 — — — 187 6 3,411 Home Equity: Secured 29,498 207 64 1 — 2,071 105 31,946 Unsecured — — — — — — — — Total ￦ 132,761 ￦ 1,098 ￦ 153 ￦ 12 ￦ 6 ￦ 8,457 ￦ 318 ￦ 142,805 (1) Includes advance loans guaranteed by the Housing Finance Credit Guarantee Fund to borrowers for the down payment of new housing that is in the process of being built. Our home equity loan portfolio includes loans that are in a second lien position. In addition to the underwriting procedures we perform when we issue home equity loans in general, we perform additional underwriting procedures with respect to home equity loans secured by a second lien to assess and confirm the value and status of any loans secured by security interests on the collateral which would be prior to our security interest under the second lien home equity loan. Under regulations implemented by the Financial Supervisory Service, our home equity loans are subject to maximum loan-to-value ratios (i.e., the ratio of the aggregate principal amount of loans, including first and second lien loans, secured by a particular item of collateral to the appraised value of such collateral) of between 40% and 70%. As such, for home equity loans, we do not lend more than an amount equal to the adjusted collateral value (i.e., the collateral value as discounted by the required loan-to-value ratio) minus the value of any loans secured by security interests on the collateral that are prior to our security interest. Accordingly, in order to ascertain the value of loans secured by security interests on the collateral which would be prior to our security interest and to confirm the status of such loans, we perform additional underwriting procedures including a review of the relevant title and security interest registration documents and bank documents and certificates regarding such loans. In addition, for purposes of calculating debt-to-income ratios applicable to loans secured by certain types of housing under regulations implemented by the Financial Supervisory Service (see “—Supervision and Regulation—Principal Regulations Applicable to Banks—Regulations Relating to Retail Household Loans”), which we apply on a nationwide basis for our home equity loans, we perform additional adjustments in our debt-to-income ratio calculations with respect to second lien home equity loans to account for the value of loans secured by security interests on the collateral that are prior to our security interest. Following the issuance of a home equity loan, we make use of the Korea Credit Information Services’ database of delinquent borrowers to generally monitor the compliance of our borrowers with their other loan 39 Table of Contents obligations, including the compliance of our second lien borrowers with their first lien loans. If a borrower in Korea is past due on payments of interest or principal for more than three months on any of its outstanding loans to Korean financial institutions (including mortgage, home equity, other consumer and credit card loans), such borrower is registered on the Korea Credit Information Services’ database of delinquent borrowers, which we monitor on a daily basis. Likewise, if a borrower in Korea is past due on payments of interest or principal for more than five business days and the overdue amount is ￦100,000 or more on any of its outstanding loans to Korean financial institutions (including mortgage, home equity, other consumer and credit card loans), such borrower is registered on the databases of delinquent borrowers of the Korea Credit Bureau and the NICE Information Service, which we also monitor on a daily basis. The information disclosed by such database, which includes the outstanding loan amount which is past due, the identity of the delinquent borrower and the name of the applicable lending institution for such loan, provides an early warning about such borrower to our loan officers at the branch level, who then closely monitor our outstanding loans to such delinquent borrower and take appropriate preventive and remedial measures (including requiring such borrower to provide additional collateral) as necessary. Upon the occurrence of a default in a borrower’s loan obligation at a different lending institution, we treat the borrower’s loan with us as part of our potential problem loans or non-performing loans. More specifically, upon learning of the occurrence of a default at the other lending institution, we deem the borrower’s ability to repay its loans to be precarious and re-classify its loans with us as “precautionary,” “substandard,” “doubtful” or an “estimated loss” according to the asset classification guidelines of the Financial Services Commission. Assuming that such loan is not delinquent, if the outstanding principal amount of the loan at the other lending institution is less than ￦15 million, we classify the loan as “precautionary” and closely monitor it to determine whether it may become problematic. If the outstanding principal amount of the loan at the other lending institution is ￦15 million or more and more than three months have passed since the default, we classify the loan with us as “doubtful.” If the borrower is registered as being in default by the Korea Credit Information Services, then we classify the loan as an “estimated loss.” However, among the mortgage loans that are classified as “doubtful” or an “estimated loss,” if there are any expected amounts to be recovered, we classify such amount as “substandard.” Pricing. The interest rates on our retail mortgage loans are generally based on a periodic floating rate (which is based on a base rate determined for three-month, six-month or twelve-month periods using our Market Opportunity Rate system, which reflects our internal cost of funding, further adjusted to account for our expenses related to lending). Our interest rates also incorporate a margin based among other things on the type of security, the credit score of the borrower and the estimated loss on the security. We can adjust the price to reflect the borrower’s current and/or expected future contribution to us. The applicable interest rate is determined at the time of the loan. If a loan is terminated prior to its maturity, the borrower is obligated to pay us an early termination fee of approximately 0.55% to 0.75% of the loan amount in addition to the accrued interest. The interest rates on our home equity loans are determined on the same basis as our retail mortgage loans. As of December 31, 2025, the Market Opportunity Rate was 2.81% for a three-month period, 2.84% for a six-month period and 2.82% for a twelve-month period. Other Consumer Loans Other consumer loans are primarily unsecured. However, such loans may be secured by real estate, deposits or securities. As of December 31, 2025, approximately ￦34,951 billion, or 59.4% of our consumer loans (other than mortgage and home equity loans) were unsecured loans (although some of these loans were guaranteed by a third party). Overdraft loans are also classified as other consumer loans, are primarily unsecured and generally have an initial maturity of one year, which is typically extended automatically on an annual basis and may be extended up to a maximum of ten years. The amount of overdraft loans as of December 31, 2025 was approximately ￦12,109 billion. Pricing. The interest rates on our other consumer loans (including overdraft loans) are determined on the same basis as on our mortgage and home equity loans, except that, for unsecured loans, the borrower’s credit 40 Table of Contents score as determined during our loan approval process is also taken into account. See “Item 11. Quantitative and Qualitative Disclosures about Market Risk—Credit Risk Management.” Deposit-taking Activities Due to our extensive nationwide network of branches, together with our long history of development and our resulting know-how and expertise, as of December 31, 2025, we had one of the largest numbers of retail customers and retail deposits among Korean commercial banks. The balance of our deposits from retail customers was ￦245,846 billion and ￦249,695 billion as of December 31, 2024 and 2025, respectively, which constituted 56.4% and 54.0%, respectively, of the balance of our total deposits. We offer many deposit products that target different segments of our retail customer base, with features tailored to each segment’s financial profile, characteristics and needs, including: • Demand deposits, which either do not accrue interest or accrue interest at a lower rate than time deposits. Demand deposits allow the customer to deposit and withdraw funds at any time and, if they are interest bearing, accrue interest at a variable rate depending on the amount of deposit. Retail and corporate demand deposits constituted 35.8% of our total deposits as of December 31, 2025 and paid average interest of 0.46% for 2025. • Time deposits, which generally require the customer to maintain a deposit for a fixed term, during which the deposit accrues interest at a fixed rate or a variable rate based on the COFIX, or to deposit specified amounts on an installment basis. If the amount of the deposit is withdrawn prior to the end of the fixed term, the customer will be paid a lower interest rate than that originally offered. The term for time deposits typically ranges from one month to three years, and the term for installment savings deposits ranges from six months to five years. Retail and corporate time deposits constituted 47.9% of our total deposits as of December 31, 2025 and paid average interest of 3.12% for 2025. Most installment savings deposits offer fixed interest rates. • Certificates of deposit, the maturities of which typically range from 30 days to 730 days with a required minimum deposit of ￦10 million. Interest rates on certificates of deposit are determined based on the length of the deposit and prevailing market rates. Our certificates of deposit are sold at a discount to their face value, reflecting the interest payable on the certificates of deposit. • Foreign currency deposits, which are available to Korean and foreign residents, non-residents and overseas immigrants. We offer foreign currency demand deposits and time deposits as well as checking accounts in 11 currencies. Foreign currency demand deposits, which accrue interest at a variable rate, allow customers to deposit and withdraw funds at any time. Foreign currency time deposits generally require customers to maintain the deposit for a fixed term, during which the deposit accrues interest at a fixed rate. If the funds in a foreign currency time deposit are withdrawn prior to the end of the fixed term, the customer will be paid a lower interest rate than that originally offered. We offer varying interest rates on our deposit products depending upon average funding costs, the rate of return on our interest-earning assets and the interest rates offered by other commercial banks. We also offer comprehensive savings deposits for housing subscription, which are monthly installment savings deposits that provide the holder with preferential rights to subscribe for both public and private housing under the Housing Act. This law is the basic law setting forth various measures supporting the purchase of houses and the supply of such houses by construction companies. These deposits require monthly installments of ￦20,000 to ￦500,000 and accrue interest at variable rates depending on the term. An eligible account holder with ￦70 million or less in annual salary income may also claim a tax deduction for 40% of its annual installment amounts, subject to a maximum deductible amount, in its income tax return for the year under the Special Tax Treatment Control Law. 41 Table of Contents In 2002, after significant research and planning, we launched private banking operations at Kookmin Bank’s headquarters. Shortly thereafter, we launched a comprehensive strategy with respect to customers with higher net worth, which included staffing appropriate representatives, marketing aggressively, establishing IT systems, selecting appropriate branch locations and readying such branches with the necessary facilities to service such customers. As of December 31, 2025, we operated 24 main private banking centers through Kookmin Bank. The Monetary Policy Board of the Bank of Korea, or the Monetary Policy Board, imposes a reserve requirement on Won currency deposits of commercial banks based generally on the type of deposit instrument. The minimum reserve requirement ratio is 7% of the average balance of Won currency demand deposits outstanding. See “—Supervision and Regulation—Principal Regulations Applicable to Banks—Liquidity.” The Depositor Protection Act provides for a deposit insurance system where the Korea Deposit Insurance Corporation guarantees to depositors the repayment of their eligible bank deposits. The deposit insurance system insures up to a total of ￦100 million per depositor per bank, which limit increased from ￦50 million through an amendment to the Depositor Protection Act of Korea that became effective in September 2025. See “—Supervision and Regulation—Principal Regulations Applicable to Banks—Deposit Insurance System.” Credit Cards Credit cards are another of our core retail products. We issue most of our credit cards under the “KB Kookmin Card” brand. Our credit card business is operated by our subsidiary, KB Kookmin Card Co., Ltd. The following table sets forth certain data relating to our credit card operations, on a non-consolidated basis, as of the dates and for the periods indicated: As of and for the Year Ended December 31, 2023(1) 2024 2025 (in billions of Won, except percentages and numbers of holders and merchants) Number of credit cardholders (at year end) (thousands) General accounts 12,032 12,447 12,881 Corporate accounts 656 678 689 Total 12,688 13,125 13,570 Number of merchants (at year end) (thousands) 2,972 2,991 3,010 Active ratio (at year end)(2) 90.2 % 90.7 % 91.4 % Credit card fees Merchant fees(3) ￦ 1,473 ￦ 1,526 ￦ 1,377 Installment and cash advance fees 739 764 717 Annual membership fees 181 184 215 Other fees 1,202 1,272 1,225 Total ￦ 3,595 ￦ 3,746 ￦ 3,534 Charge volume(4) General purchase ￦ 105,092 ￦ 108,877 ￦ 113,108 Installment purchase 22,377 23,264 23,692 Cash advance 10,330 9,927 8,268 Card loan(5) 6,853 6,918 6,370 Total ￦ 144,652 ￦ 148,986 ￦ 151,438 Outstanding balance (at year end) General purchase ￦ 8,785 ￦ 9,412 ￦ 9,548 Installment purchase 5,677 6,049 6,422 Cash advance 1,258 1,198 874 Card loan(5) 6,661 6,850 6,336 Total ￦ 22,381 ￦ 23,509 ￦ 23,180 42 Table of Contents As of and for the Year Ended December 31, 2023(1) 2024 2025 (in billions of Won, except percentages and numbers of holders and merchants) Average outstanding balances General purchase ￦ 9,156 ￦ 9,429 ￦ 9,579 Installment purchase 5,814 5,897 6,126 Cash advance 1,289 1,225 1,005 Card loan(5) 6,503 6,803 6,596 Total ￦ 22,762 ￦ 23,355 ￦ 23,306 Delinquency ratios (at year end)(6) From 1 month to 3 months 0.82 % 0.89 % 0.73 % From 3 months to 6 months 0.23 0.39 0.25 Over 6 months 0.04 0.07 0.04 Total 1.08 % 1.36 % 1.03 % Non-performing loan ratio 0.28 % 0.49 % 0.33 % Write-offs (gross) ￦ 661 ￦ 691 ￦ 639 Recoveries(7) 113 122 131 Net write-offs ￦ 548 ￦ 569 ￦ 508 Gross write-off ratio(8) 2.96 % 3.01 % 2.78 % Net write-off ratio(9) 2.45 % 2.48 % 2.21 % (1) Certain figures with respect to our credit card fees, outstanding balances and average outstanding balances as of and for the year ended December 31, 2023 above have been restated to reflect certain changes in our accounting policies relating to the accumulation of points for our coupon-type card services. (2) The active ratio represents the ratio of accounts used at least once within the last six months to total accounts as of year-end. (3) Merchant fees consist of maintenance fees and costs associated with prepayment by us (on behalf of customers) of sales proceeds to merchants, processing fees relating to sales and membership applications, costs relating to the management of delinquencies and recoveries, provision for loan losses, general variable expenses and other fixed costs that are charged to our member merchants. We typically charge our member merchants fees that range from 0.4% to 2.3%. We offer discounts for member merchants that are small- and medium-sized enterprises pursuant to applicable laws. (4) Represents the aggregate cumulative amount charged during the year. (5) Card loans consist of loans that are provided on an unsecured basis to cardholders upon prior agreement. Payment on such a loan can be due either in one payment or in installments after a fixed period, in the case of principal payments, and will be due in installments, in the case of interest payments. (6) Represents ratio of credit card balances overdue by one month or more to outstanding balance. In line with industry practice, we have restructured a portion of delinquent credit card account balances as loans. As of December 31, 2024 and 2025, these restructured loans amounted to ￦169 billion and ￦116 billion, respectively. Because these restructured loans are not treated as being delinquent at the time of conversion or for a period of time thereafter, our delinquency ratios may not fully reflect all delinquent amounts relating to our outstanding balances. (7) Does not include proceeds that we received from sales of our non-performing loans that were written off. (8) Represents the ratio of gross write-offs for the year to average outstanding balance for the year. Our charge-off policy is generally to write off balances which have been overdue for four payment cycles or more or which have been classified as expected loss. (9) Represents the ratio of net write-offs for the year to average outstanding balances for the year. Our charge-off policy is generally to write off balances which have been overdue for four payment cycles or more or which have been classified as expected loss. In contrast to the system in the United States and many other countries, where most credit cards are revolving cards that allow outstanding amounts to be rolled over from month to month so long as a required minimum percentage is repaid, credit cardholders in Korea are generally required to pay for their purchases within approximately 14 to 44 days of purchase depending on their payment cycle. However, we also offer revolving payment plans to individuals that allow outstanding amounts to be rolled over to subsequent payment periods. Delinquent accounts (defined as amounts overdue for one day or more) are charged penalty interest and closely monitored. For installment purchases, we charge interest on unpaid installments at rates that vary according to the individual cardholder’s membership level, which is based on, among others, transaction history, the length of the cardholder’s relationship with us and contribution to our profitability. 43 Table of Contents We are committed to continuing to enhance our credit card business by strengthening our risk management and maximizing our operational efficiency. In addition, we believe that our extensive branch network, brand recognition and overall size will enable us to cross-sell products such as credit cards to our existing and new customers. To promote our credit card business, we offer services targeted to various financial profiles and customer requirements and are concentrating on: • strengthening cross-sales to existing customers and offering integrated financial services; • offering cards that provide additional benefits such as frequent flyer miles and reward program points that can be redeemed by the customer for complementary services, prizes and cash; • offering platinum cards, VVIP cards and other prime members’ cards, which have a higher credit limit and provide additional services in return for a higher fee; • acquiring new customers through strategic alliances and cross-marketing with retailers; • encouraging increased use of credit cards by existing customers through special offers for frequent users; • introducing new features such as travel services and insurance through alliance partners; and • developing fraud detection and security systems to prevent the misuse of credit cards. As of December 31, 2025, we had approximately 13.6 million credit cardholders. Of the credit cards outstanding, approximately 91.4% were active, meaning that they had been used at least once during the previous six months. Our card revenues consist principally of cash advance fees, merchant fees, credit card installment fees, interest income from credit card loans, annual fees paid by cardholders, interest and fees on late payments and, with respect to revolving payment plans we offer, interest and fees relating to revolving balances. Under non-exclusive license agreements with overseas financial services corporations, we also issue MasterCard, Visa, American Express, JCB and China UnionPay credit cards. We issue debit cards and charge merchants commissions in the amount of approximately 1.0% of the amounts purchased using a debit card. We also issue “check cards,” which are similar to debit cards except that “check cards” are accepted by all merchants that accept credit cards, and charge merchants commissions that typically range from 0.15% to 1.50%. Much like debit cards, check card purchases are also debited directly from customers’ accounts with us. Corporate Banking We lend to and take deposits from small- and medium-sized enterprises and, to a lesser extent, large corporate customers. Kookmin Bank, our banking subsidiary, had 415,671 small- and medium-sized enterprise borrowers and 1,810 large corporate borrowers for Won-currency loans as of December 31, 2025. For 2025, we received fee revenue from cash management services offered to corporate customers, which include “firm-banking” services such as inter-account transfers, transfers of funds from various branches and agencies of a company (such as insurance premium payments) to the account of the headquarters of such company and transfers of funds from various customers of a company to the main account of such company, in the amount of ￦138.1 billion. Of our branch network as of December 31, 2025, we had two branches that primarily handled large corporate banking. 44 Table of Contents The following table sets forth the balances and the percentage of our total corporate lending represented by our small- and medium-sized enterprise business loans and our large corporate business loans as of the dates indicated, estimated based on our internal classifications of corporate borrowers: As of December 31, 2024 2025 (in billions of Won, except percentages) Corporate: Small- and medium-sized enterprise loans ￦ 158,778 75.6 % ￦ 165,610 74.7 % Large corporate loans 51,305 24.4 56,189 25.3 Total ￦ 210,083 100.0 % ￦ 221,799 100.0 % On the deposit-taking side, we currently offer our corporate customers several types of corporate deposits. Our corporate deposit products can be divided into two general categories: (1) demand deposits that have no restrictions on deposits or withdrawals, but which offer a relatively low interest rate; and (2) deposits from which withdrawals are restricted for a period of time, but offer higher interest rates. We also offer installment savings deposits, certificates of deposit and repurchase instruments. We offer varying interest rates on deposit products depending upon the rate of return on our income-earning assets, average funding costs and interest rates offered by other nationwide commercial banks. The total amount of deposits from our corporate customers amounted to ￦204,929 billion as of December 31, 2025, or 44.3% of our total deposits. Small- and Medium-sized Enterprise Banking Our small- and medium-sized enterprise banking business has traditionally been and will remain one of our core businesses because of both our historical development and our accumulated expertise. We believe that we possess the necessary elements to succeed in the small- and medium-sized enterprise market, including our extensive branch network, our credit rating system for credit approval, our marketing capabilities (which we believe have provided us with significant brand loyalty) and our ability to take advantage of economies of scale. We use the term “small- and medium-sized enterprises” as defined in the Framework Act on Small and Medium Enterprises and related regulations. Under the Framework Act on Small and Medium Enterprises and related regulations, an enterprise must meet each of the following criteria in order to meet the definition of a small- and medium-sized enterprise: (i) total assets at the end of the immediately preceding fiscal year must be less than ￦500 billion, (ii) the average or annual sales revenue standards as prescribed by the Enforcement Decree of the Framework Act on Small and Medium Enterprises that are applicable to the enterprise’s primary business must be met and (iii) the standards of management independence as prescribed by the Enforcement Decree of the Framework Act on Small and Medium Enterprises must be met. However, pursuant to an amendment to the Framework Act on Small and Medium Enterprises, which became effective in June 2020, an enterprise that qualifies as a small- and medium-sized enterprise pursuant to the above definition shall no longer be considered a small- and medium-sized enterprise if it is incorporated into, or is deemed to be incorporated into, a business group subject to certain disclosure requirements under the Monopoly Regulation and Fair Trade Act. Moreover, certified social enterprises (as defined in the Social Enterprise Promotion Act) and cooperatives and federations of cooperatives (each as defined in the Framework Act on Cooperatives, the Consumer Cooperatives Act and the Small and Medium Enterprise Cooperatives Act) that satisfy the requirements prescribed by the Framework Act on Small and Medium Enterprises may also qualify as small- and medium-sized enterprises. 45 Table of Contents Lending Activities Our principal loan products for our small- and medium-sized enterprise customers are working capital loans and facilities loans. Working capital loans are provided to finance working capital requirements and include notes discounted and trade financing. Facilities loans are provided to finance the purchase of equipment and the establishment of manufacturing assembly plants. As of December 31, 2025, working capital loans and facilities loans accounted for 46.1% and 53.9%, respectively, of our total small- and medium-sized enterprise loans. As of December 31, 2025, Kookmin Bank, our banking subsidiary, had 415,671 small- and medium-sized enterprise customers on the lending side. Loans to small- and medium-sized enterprises may be secured by real estate or deposits or may be unsecured. As of December 31, 2025, secured loans and guaranteed loans accounted for, in the aggregate, 86.9% of our small- and medium-sized enterprise loans. Among the secured loans, 98.1% were secured by real estate and 1.9% were secured by deposits or securities. Working capital loans generally have a maturity of one year, but may be extended for additional terms of up to one year in length for an aggregate term of five years. Facilities loans have a maximum maturity of 15 years for amortizing loans and 20 years for bullet repayment loans. When evaluating the extension of working capital loans, we review the corporate customer’s creditworthiness and capability to generate cash. Furthermore, we take credit guaranty letters from other financial institutions and use time deposits that the borrower has with us as collateral, and may require additional collateral. The value of any collateral is defined using a formula that takes into account the appraised value of the property, any prior liens or other claims against the property and an adjustment factor based on a number of considerations including, with respect to property, the value of any nearby property sold in a court-supervised auction during the previous five years. We revalue any collateral on a periodic basis (generally every year) or if a trigger event occurs with respect to the loan in question. We also offer mortgage loans to home builders or developers who build or sell single- or multi-family housing units, principally apartment buildings. Many of these builders and developers are categorized as small- and medium-sized enterprises. We offer a variety of such mortgage loans, including loans to purchase property or finance the construction of housing units and loans to contractors used for working capital purposes. Such mortgage loans subject us to the risk that the housing units will not be sold. As a result, we review the probability of the sale of the housing unit when evaluating the extension of a loan. We also review the borrower’s creditworthiness and the adequacy of the intended use of proceeds. Furthermore, we take a lien on the land on which the housing unit is to be constructed as collateral. If the collateral is not sufficient to cover the loan, we also take a guarantee from the Housing Finance Credit Guarantee Fund as security. A substantial number of our small- and medium-sized enterprise customers are SOHOs, which we currently define to include sole proprietorships and individual business interests. With respect to SOHOs, we apply credit risk evaluation models, which not only use quantitative analysis related to a customer’s accounts, personal credit and financial information and due amounts but also require our credit officers to perform a qualitative analysis of each potential SOHO customer. With respect to SOHO loans in excess of ￦2 billion, our credit risk evaluation model also includes a quantitative analysis of the financial statements of the underlying business. We generally lend to SOHOs on a secured basis, although a small portion of our SOHO exposures are unsecured. Pricing We establish the price for our corporate loan products based principally on transaction risk, our cost of funding and market considerations. Transaction risk is measured by such factors as the credit rating assigned to a particular borrower, the size of the borrower and the value and type of collateral. Our loans are priced based on the Market Opportunity Rate system, which is a periodic floating rate system that takes into account the current 46 Table of Contents market interest rate. For the Market Opportunity Rate as of December 31, 2025, see “—Retail Banking—Lending Activities—Mortgage and Home Equity Lending—Pricing.” While we generally utilize the Market Opportunity Rate system, depending on the price and other terms set by competing banks for similar borrowers, we may adjust the interest rate we charge to compete more effectively with other banks. Large Corporate Banking Large corporate customers include all companies that are not small- and medium-sized enterprise customers. Kookmin Bank’s articles of incorporation provide that financial services to large corporate customers must be no more than 40% of the total amount of our Won-denominated loans. Our business focus with respect to large corporate banking is to selectively increase the proportion of high quality large corporate customers. Specifically, we are carrying out various initiatives to improve our customer relationship with large corporate customers and have been seeking to expand our service offerings to this segment. Lending Activities Our principal loan products for our large corporate customers are working capital loans and facilities loans. As of December 31, 2025, working capital loans and facilities loans accounted for 75.7% and 24.3%, respectively, of our total large corporate loans. We also offer mortgage loans to large corporate clients who build or sell single- or multi-family housing units, as described above under “—Small- and Medium-sized Enterprise Banking—Lending Activities.” As of December 31, 2025, secured loans and guaranteed loans accounted for, in the aggregate, 41.7% of our large corporate loans. Among the secured loans, 75.2% were secured by real estate and 24.8% were secured by deposits or securities. Working capital loans generally have a maturity of one year, but may be extended for additional terms ranging from three months to one year in length for an aggregate term of five years. Facilities loans have a maximum maturity of 15 years for amortizing loans and 20 years for bullet repayment loans. In our unsecured lending to large corporate customers, a critical consideration in our policy regarding the extension of such unsecured loans is the borrower’s creditworthiness. We assign each borrower a credit rating based on the judgment of our experts or scores calculated using the appropriate credit rating system, taking into account both financial factors and non-financial factors (such as our perception of a borrower’s reliability, management and operational risk and risk relating to the borrower’s industry). The credit ratings, along with such factors, are key determinants in our lending to large corporate customers. Large corporate customers generally have higher credit ratings due to their higher repayment capability compared to other types of borrowers, such as small- and medium-sized enterprise borrowers. In addition, large corporate borrowers generally are affected to a lesser extent than small- and medium-sized enterprise borrowers by fluctuations in the Korean economy and also maintain more sophisticated financial records. As of December 31, 2025, 92.5% of our large corporate customers had credit ratings of BBB- or above according to the internal credit rating system of Kookmin Bank, compared to 78.9% of our small- and medium-sized enterprise customers. A credit rating of BBB- is assigned to customers whose ability to repay the principal and interest on their outstanding loans is determined by us to be generally satisfactory but nonetheless subject to adverse effects under unfavorable economic conditions or during downturns in the business environment. Based on our internal analysis of historical data, we believe that the probability of default for loans extended to large corporate customers with a credit rating of BBB- or above is between 0.00% and 2.26%. We monitor the credit status of large corporate borrowers and collect information to adjust our ratings appropriately. We also manage and monitor our large corporate customers through a dedicated Corporate Banking Branch and Kookmin Bank’s Large Corporate Business Department. In addition, Kookmin Bank’s Credit Risk Department manages the exposures to each large corporate customer and conducts in-depth analysis of various economic and industry-related risks that are relevant to large corporate customers. 47 Table of Contents As of December 31, 2025, in terms of our outstanding loan balance, 30.8% was extended to borrowers in the financial industry, 27.1% was extended to borrowers in the manufacturing industry, and 24.8% was extended to borrowers in the service industry. Pricing We determine pricing of our large corporate loans in the same way as we determine the pricing of our small- and medium-sized enterprise loans. See “—Small- and Medium-sized Enterprise Banking—Pricing” above. As of December 31, 2025, the Market Opportunity Rate, which is utilized in pricing loans offered by us, was the same for our large corporate loans as for our small- and medium-sized enterprise loans. Capital Markets Activities and International Banking/Finance Through our capital markets operations, we invest and trade in debt and equity securities and, to a lesser extent, engage in derivatives and asset securitization transactions and make call loans. We also provide investment banking and securities brokerage services. Securities Investment and Trading We invest in and trade securities for our own account in order to maintain adequate sources of liquidity and to generate interest and dividend income and capital gains. As of December 31, 2024 and 2025, our investment portfolio, which consists primarily of financial assets at amortized cost and financial assets at fair value through other comprehensive income, and our trading portfolio had a combined total carrying amount of ￦208,730 billion and ￦222,713 billion (including the investment and trading portfolios of our insurance operations) and represented 27.5% and 27.9% of our total assets, respectively. Our trading and investment portfolios consist primarily of Korean treasury securities and debt securities issued by Korean government agencies, local governments or certain government-invested enterprises and debt securities issued by financial institutions. As of December 31, 2024 and 2025, we held debt securities with a total carrying amount of ￦199,636 billion and ￦208,950 billion, respectively, of which: • financial assets at amortized cost accounted for ￦37,131 billion and ￦35,085 billion, or 18.6% and 16.8%, respectively; • debt securities at fair value through other comprehensive income accounted for ￦88,736 billion and ￦93,312 billion, or 44.4% and 44.7%, respectively; and • debt securities at fair value through profit or loss accounted for ￦73,769 billion and ￦80,553 billion, or 36.9% and 38.5%, respectively. Of these amounts, debt securities issued by the Korean government and government agencies as of December 31, 2024 and 2025 amounted to: • ￦6,029 billion and ￦4,944 billion, or 16.2% and 14.1%, respectively, of our financial assets at amortized cost; • ￦38,108 billion and ￦43,783 billion, or 42.9% and 46.9%, respectively, of our financial assets at fair value through other comprehensive income; and • ￦13,390 billion and ￦12,700 billion, or 18.2% and 15.8%, respectively, of our debt securities at fair value through profit or loss. 48 Table of Contents From time to time we also purchase equity securities for our securities portfolios. Our equity securities consist primarily of marketable beneficiary certificates and equities listed on the KRX KOSPI Market, the KRX KOSDAQ Market or the KRX KONEX Market. As of December 31, 2024 and 2025: • equity securities at fair value through other comprehensive income had a carrying amount of ￦3,713 billion and ￦4,612 billion, or 4.0% and 4.7%, respectively, of our securities at fair value through other comprehensive income portfolio; and • equity securities at fair value through profit or loss had a carrying amount of ￦4,275 billion and ￦7,601 billion, or 5.5% and 8.6%, respectively, of our securities at fair value through profit or loss portfolio. Our trading portfolio also includes derivative-linked securities, the underlying assets of which were linked to, among other things, interest rates, exchange rates, stock price indices or credit risks. As of December 31, 2024 and 2025, derivative-linked securities in our trading portfolio had a carrying amount of ￦1,924 billion and ￦2,161 billion, or 2.5% and 2.4% of our trading portfolio, respectively. See “—Derivatives Trading.” The following tables show, as of the dates indicated, the unrealized gains and losses on financial assets at fair value through other comprehensive income and financial assets at amortized cost within our investment portfolio, and the amortized cost and fair value of the portfolio by type of financial asset: As of December 31, 2024 Amortized Cost(7) Net Unrealized Gain and Loss(8) Loss Allowance for Expected Credit Losses(9) Fair Value (in billions of Won) Financial assets at fair value through other comprehensive income: Debt securities Korean treasury securities and government agencies ￦ 40,287 ￦ (2,177 ) ￦ 2 ￦ 38,108 Financial institutions(1) 26,146 (50 ) 5 26,091 Corporate(2) 22,749 (678 ) 12 22,059 Asset-backed securities(3) 2,385 (18 ) 1 2,366 Others 197 (86 ) — 111 Subtotal 91,764 (3,009 ) 20 88,735 Equity securities 2,736 977 — 3,713 Total financial assets at fair value through other comprehensive income ￦ 94,500 ￦ (2,032 ) ￦ 20 ￦ 92,448 Financial assets at amortized cost: Korean treasury securities and government agencies ￦ 6,029 ￦ (113 ) ￦ — ￦ 5,916 Financial institutions(4) 12,762 (4 ) 12 12,746 Corporate(5) 8,946 (64 ) — 8,882 Asset-backed securities(6) 9,321 (81 ) 5 9,235 Others 73 (4 ) — 69 Total financial assets at amortized cost ￦ 37,131 ￦ (266 ) ￦ 17 ￦ 36,848 49 Table of Contents As of December 31, 2025 Amortized Cost(7) Net Unrealized Gain and Loss(8) Loss Allowance for Expected Credit Losses(9) Fair Value (in billions of Won) Financial assets at fair value through other comprehensive income: Debt securities Korean treasury securities and government agencies ￦ 48,161 ￦ (4,377 ) ￦ 1 ￦ 43,783 Financial institutions(1) 24,177 (182 ) 4 23,991 Corporate(2) 24,171 (945 ) 11 23,215 Asset-backed securities(3) 2,220 (56 ) 1 2,163 Others 222 (62 ) — 160 Subtotal 98,951 (5,622 ) 17 93,312 Equity securities 3,451 1,161 — 4,612 Total financial assets at fair value through other comprehensive income ￦ 102,402 ￦ (4,461 ) ￦ 17 ￦ 97,924 Financial assets at amortized cost: Korean treasury securities and government agencies ￦ 4,944 ￦ (89 ) ￦ — ￦ 4,855 Financial institutions(4) 13,817 (52 ) 12 13,753 Corporate(5) 8,698 (66 ) — 8,632 Asset-backed securities(6) 7,551 (85 ) 4 7,462 Others 74 (4 ) — 70 Total financial assets at amortized cost ￦ 35,084 ￦ (296 ) ￦ 16 ￦ 34,772 (1) Includes debt securities issued by Korea Housing Finance Corporation, the Korea Development Bank, the Bank of Korea, Industrial Bank of Korea and Korea Electric Power Corporation in the aggregate amount of ￦18,749 billion as of December 31, 2024 and debt securities issued by Korea Housing Finance Corporation, the Korea Development Bank, the Bank of Korea, Industrial Bank of Korea and Korea Electric Power Corporation in the aggregate amount of ￦15,783 billion as of December 31, 2025. These financial institutions are owned or controlled by the Korean government. (2) Includes debt securities issued by Korea Housing Finance Corporation and Korea Electric Power Corporation in the aggregate amount of ￦2,208 billion as of December 31, 2024 and debt securities issued by Korea Housing Finance Corporation and Korea Electric Power Corporation in the aggregate amount of ￦2,297 billion as of December 31, 2025. These entities are owned or controlled by the Korean government. (3) Includes mortgage-backed securities issued by Korea Housing Finance Corporation, which have residential mortgage loans as underlying assets, in the amount of ￦1,842 billion as of December 31, 2024 and ￦1,677 billion as of December 31, 2025. Korea Housing Finance Corporation is owned by the Korean government. (4) Includes debt securities issued by the Korea Development Bank, the Bank of Korea and Industrial Bank of Korea in the aggregate amount of ￦1,823 billion as of December 31, 2024 and debt securities issued by the Korea Development Bank, the Bank of Korea and Industrial Bank of Korea in the aggregate amount of ￦3,154 billion as of December 31, 2025. These financial institutions are owned or controlled by the Korean government. (5) Includes debt securities issued by Korea Housing Finance Corporation, the Korea Development Bank and Korea Electric Power Corporation in the aggregate amount of ￦1,810 billion as of December 31, 2024 and debt securities issued by Korea Housing Finance Corporation and Korea Electric Power Corporation in the aggregate amount of ￦1,734 billion as of December 31, 2025. These entities are owned or controlled by the Korean government. (6) Includes mortgage-backed securities issued by Korea Housing Finance Corporation, which have residential mortgage loans as underlying assets, in the amount of ￦9,261 billion as of December 31, 2024 and ￦7,271 billion as of December 31, 2025. Korea Housing Finance Corporation is owned by the Korean government. (7) Gross carrying amount before adjusting for loss allowance for expected credit losses in accordance with IFRS 9. (8) Net unrealized gain and loss after adjusting for loss allowance for expected credit losses in accordance with IFRS 9. (9) Loss allowance for expected credit losses in accordance with IFRS 9. 50 Table of Contents Derivatives Trading We engage in derivatives trading, including on behalf of our customers. Our trading volume decreased from ￦684,128 billion in 2023 to ￦605,459 billion in 2024 and ￦532,638 billion in 2025. Our net trading expense from derivatives for the years ended December 31, 2023, 2024 and 2025 was ￦(431) billion, ￦(583) billion and ￦(412) billion, respectively. We provide and trade a range of derivatives products, including: • interest rate swaps and options, relating to interest rate risks; • cross-currency swaps, forwards and options relating to foreign exchange risks; and • stock price index options linked to the KOSPI index. Our derivatives operations focus on addressing the needs of our corporate clients to hedge their risk exposure and the need to hedge our risk exposure that results from such client contracts. We also engage in derivatives trading activities to hedge the interest rate and foreign currency risk exposures that arise from our own assets and liabilities. In addition, we engage in proprietary trading of derivatives within our regulated open position limits. The following shows the estimated fair value of our derivatives as of December 31, 2024 and 2025: As of December 31, 2024 2025 Estimated Fair Value Assets Estimated Fair Value Liabilities Estimated Fair Value Assets Estimated Fair Value Liabilities (in billions of Won) Foreign exchange derivatives (1) ￦ 9,925 ￦ 9,618 ￦ 5,926 ￦ 5,748 Interest rate derivatives (1) 1,449 1,509 1,749 1,678 Equity derivatives 297 336 447 550 Credit derivatives 37 27 36 26 Commodity derivatives 17 16 15 15 Others 6 277 5 217 Total ￦ 11,731 ￦ 11,783 ￦ 8,178 ￦ 8,234 (1) Includes those for trading purposes and hedging purposes. The following table shows certain information related to our derivatives designated as fair value hedges for the years ended December 31, 2024 and 2025: Year Ended December 31, 2024 2025 Hedging Instruments Hedged Item Ineffective Portion Hedging Instruments Hedged Item Ineffective Portion (in billions of Won) Foreign exchange derivatives ￦ (190 ) ￦ 218 ￦ 28 ￦ (66 ) ￦ (1 ) ￦ (67 ) Interest rate derivatives (2 ) 6 4 5 (14 ) (9 ) Total ￦ (192 ) ￦ 224 ￦ 32 ￦ (61 ) ￦ (15 ) ￦ (76 ) 51 Table of Contents The following table shows certain information related to our derivatives designated as cash flow hedges for the years ended December 31, 2024 and 2025: Year Ended December 31, 2024 2025 Hedging Instruments Effective Portion Ineffective Portion Hedging Instruments Effective Portion Ineffective Portion (in billions of Won) Foreign exchange derivatives ￦ 278 ￦ 277 ￦ 1 ￦ (142 ) ￦ (144 ) ￦ 2 Interest rate derivatives 65 65 — (343 ) (343 ) — Total ￦ 343 ￦ 342 ￦ 1 ￦ (485 ) ￦ (487 ) ￦ 2 The following table shows certain information related to financial instruments designated as net investment hedges in foreign operations for the years ended December 31, 2024 and 2025: Year Ended December 31, 2024 2025 Hedging instruments Effective Portion Ineffective Portion Hedging instruments Effective Portion Ineffective Portion (in billions of Won) Foreign exchange derivatives (1) ￦ (29 ) ￦ (29 ) ￦ — ￦ 8 ￦ 8 ￦ — Interest rate derivatives (224 ) (224 ) — 39 39 — Total ￦ (253 ) ￦ (253 ) ￦ — ￦ 47 ￦ 47 ￦ — (1) Includes the gain (loss) on a non-derivative instrument designated as a hedging instrument. Asset Securitization Transactions We are active in the Korean asset-backed securities market. Based on our diverse experience with respect to product development and management capabilities relating to asset securitization, we offer customers a wide range of financial products and participate in various asset securitization transactions, including through our subsidiary KB Securities, to reinforce our position as a leading financial services provider with respect to the asset securitization market. We were involved in asset securitization transactions with an initial aggregate issue amount of ￦8,502 billion in 2023, ￦8,844 billion in 2024 and ￦11,259 billion in 2025, a significant portion of which were public offerings of asset-backed securities. Call Loans We make call loans and borrow call money in the short-term money market. Call loans are defined as short-term lending among banks and financial institutions either in Won or in foreign currencies with maturities of 90 days or less. Typically, call loans have maturities of one day. As of December 31, 2025, we had made call loans of ￦6,402 billion and borrowed call money of ￦4,228 billion, compared to ￦5,403 billion and ￦2,841 billion, respectively, as of December 31, 2024. Investment Banking We have focused on selectively expanding our investment banking activities in order to increase our fee income and diversify our revenue base. We provide investment banking services primarily through KB Securities and Kookmin Bank. Our principal investment banking services include: • securities underwriting; • financing and financial advisory services for mergers and acquisitions; 52 Table of Contents • project finance and financial advisory services for social overhead capital projects such as highway, port, power, water and sewage projects; • financing and financial advisory services for real estate development projects; and • structured finance. In May 2016, we acquired 22.56% of the outstanding shares of Hyundai Securities Co., Ltd., a publicly listed Korean securities firm, and further increased our shareholding in Hyundai Securities to 29.62% in June 2016 by acquiring treasury shares of Hyundai Securities. In October 2016, we effected a comprehensive stock swap of the outstanding shares of Hyundai Securities for newly issued shares of our company, as a result of which Hyundai Securities became a wholly-owned subsidiary. Following such transaction, we merged our existing subsidiary, KB Investment & Securities, with and into Hyundai Securities in December 2016 and changed the name of the surviving entity to KB Securities. Through the acquisition of Hyundai Securities and the creation of an integrated securities firm, we sought to strengthen our investment banking and securities brokerage capabilities, as well as to achieve economies of scale. In 2025, we generated net investment banking income of ￦1,846 billion, consisting of ￦596 billion of net interest income and ￦1,250 billion of net non-interest income. Securities Brokerage We provide securities brokerage services through KB Securities. Our activities include provision of brokerage services to our retail and corporate customers relating to a wide range of investment products, including stocks, futures, options, equity- and derivative-linked securities and debt instruments, as well as provision of prime brokerage services to hedge funds. In addition, we offer self-directed brokerage services through KB Securities’ online and mobile brokerage platforms. As of December 31, 2025, KB Securities operated a brokerage network consisting of 74 branches and sub-branches in Korea. In 2025, KB Securities generated commission income of ￦779 billion through its securities brokerage activities. International Banking and Finance We engage in various international banking and finance activities, including foreign exchange services and derivatives dealing, import and export-related services, offshore lending, syndicated loans, foreign currency securities investment and non-life insurance. These services are provided primarily to our domestic customers and overseas subsidiaries and affiliates of Korean corporations and, to a limited extent, to local companies and individuals. We also raise foreign currency funds through our international banking and finance operations. The table below sets forth certain information regarding our foreign currency assets and borrowings: As of December 31, 2024 2025 (in millions of US$) Total foreign currency assets US$ 61,957 US$ 66,684 Foreign currency borrowings: Borrowings 15,072 14,398 Debentures 9,707 10,103 Total borrowings US$ 24,779 US$ 24,501 53 Table of Contents The table below sets forth our overseas subsidiaries, branches and representative and liaison offices in operation as of December 31, 2025: Business Unit(1) Location Subsidiaries (22) Kookmin Bank (China) Ltd. (including five branches) China KB Microfinance Myanmar Co., Ltd. (including 15 branches) Myanmar KB PRASAC Bank Plc. (including 186 branches) Cambodia PT Bank KB Indonesia Tbk (including 151 branches) Indonesia KB Bank Myanmar Ltd. Myanmar KBFG Securities America Inc. United States KB Securities Hong Kong Ltd. Hong Kong KB Securities Vietnam Joint Stock Company (including three branches) Vietnam KB FINA Company Limited Vietnam PT KB Valbury Sekuritas (including 15 branches) Indonesia KBFG Insurance (China) Co., Ltd. (including one branch) China PT. Kookmin Best Insurance Indonesia (including four branches) Indonesia Leading Insurance Services, Inc. United States KB Daehan Specialized Bank PLC. (including eight branches) Cambodia PT. KB Finansia Multi Finance (including 116 branches) Indonesia KB J Capital Co., Ltd. Thailand KB Asset Management Singapore Pte. Ltd. Singapore PT KB Valbury Asset Management Indonesia KBAM Shanghai Advisory Services Co., Ltd. China KB KOLAO Leasing Co., Ltd. (including one branch) Laos PT Sunindo Kookmin Best Finance (including one branch) Indonesia PT KB Data Systems Indonesia Indonesia Branches (13) Kookmin Bank, Tokyo Branch Japan Kookmin Bank, Auckland Branch New Zealand Kookmin Bank, New York Branch United States Kookmin Bank, London Branch United Kingdom Kookmin Bank, Ho Chi Minh City Branch Vietnam Kookmin Bank, Hanoi Branch Vietnam Kookmin Bank, Hong Kong Branch Hong Kong Kookmin Bank, Gurugram Branch India Kookmin Bank, Chennai Branch India Kookmin Bank, Pune Branch India Kookmin Bank, Singapore Branch Singapore Kookmin Best Insurance Co., Ltd. U.S. Branch United States KBFG Investment, Boston Branch United States Representative and Liaison Offices (6) KB Securities, Shanghai Representative Office China KB Securities, Mumbai Liaison Office India KB Insurance, Hanoi Liaison Office Vietnam KB Insurance, Ho Chi Minh City Liaison Office Vietnam KB Kookmin Card, Yangon Representative Office Myanmar KB Asset Management, Ho Chi Minh City Representative Office Vietnam (1) Does not include subsidiaries and branches in liquidation or dissolution. 54 Table of Contents Trustee and Custodian Services Relating to Investment Trusts and Other Functions We act as a trustee for 106 financial investment companies with a collective investment license, which invest in investment assets using funds raised by the sale of beneficiary certificates of investment trusts to investors. We also act as custodian for 278 financial institutions and as fund administrator for 163 financial institutions with respect to various investments, as well as acting as settlement agent in connection with such services. We receive a fee for acting in these capacities and generally perform the following functions: • holding assets for the benefit of the investment trusts or institutional investors; • receiving and making payments in respect of such investments; • acting as settlement agent in respect of such investments on behalf of the investment trust or institutional investors, in the domestic and overseas markets; • providing reports on assets held in custody; • providing certain foreign exchange services for overseas investment and foreign investors; and • providing fund-related administration and accounting services. For the year ended December 31, 2025, our fee income from our trustee and custodian services was ￦42.8 billion and revenue collected as a result of administration of the underlying investments was ￦28.0 billion. Other Businesses Trust Account Management Services Money Trust Management Services We provide trust account management services for both specified money trusts and unspecified money trusts. We receive fees for our trust account management services consisting of basic fees that are based upon a percentage of either the net asset value of the assets or the principal under management and, for certain types of trust account operations, performance fees that are based upon the performance of the trust account operations. In 2025, our basic money trust fees ranged from 0.1% to 2.0% of total assets under management depending on the type of trust account. We also charge performance fees with respect to certain types of trust account products. We receive penalty payments when customers terminate their trust accounts prior to the original contract maturity. We currently provide trust account management services for 20 types of money trusts. The maturities of the money trusts we manage vary by the type of the trust. Approximately 2.0% of our money trusts also provide periodic payments of dividends which are added to the assets held in such trusts and not distributed. Under Korean law, the assets of our trust accounts are segregated from our banking account assets and are not available to satisfy the claims of any of our potential creditors. We are, however, permitted to deposit surplus funds generated by trust assets into our banking accounts in certain circumstances as set forth under the Financial Investment Services and Capital Markets Act and the regulations thereunder. As of December 31, 2025, the total balance of our money trusts was ￦75,597 billion (as calculated in accordance with Statement of Korea Accounting Standard No. 5004, Trust Accounts, and the Enforcement Regulations of Financial Investment Services under the Financial Investment Services and Capital Markets Act, which we refer to as an “SKAS basis”). As for unspecified money trust accounts, we have investment discretion over all money trusts, which are pooled and managed jointly for each type of trust account. Specified money trust accounts are established on behalf of individual customers who direct our investment of trust assets. 55 Table of Contents The following table shows the balances of our money trusts by type as of the dates indicated. Under IFRS, we consolidate trust accounts for which we guarantee both the repayment of the principal amount and a fixed rate of interest as well as trust accounts for which we guarantee only the repayment of the principal amount. As of December 31, 2024 2025 (in billions of Won) Principal and interest guaranteed trusts(1) ￦ 0.1 ￦ 0.1 Principal guaranteed trusts(1) 3,403 3,175 Performance trusts(1)(2) 64,062 72,422 Total ￦ 67,465 ￦ 75,597 (1) Calculated on an SKAS basis. (2) Trusts which are primarily non-guaranteed. The balance of our money trusts increased 12.1% between December 31, 2024 and December 31, 2025. As of December 31, 2025, the trust assets we managed consisted principally of securities investments and loans from the trust accounts. As of December 31, 2025, on an SKAS basis, our trust accounts had invested in securities in the aggregate amount of ￦24,393 billion, of which ￦8,972 billion was debt securities and derivative-linked securities. Securities investments consist of government-related debt securities, corporate debt securities, including bonds and commercial paper, equity securities, derivative-linked securities and other securities. Loans made by our trust account operations are similar in type to the loans made by our bank account operations. As of December 31, 2025, on an SKAS basis, our trust accounts had made loans in the principal amount of ￦189 billion (excluding loans from the trust accounts to our banking accounts of ￦6,306 billion), which accounted for 0.3% of our money trust assets. Loans by our money trusts are subject to the same credit approval process as loans from our banking accounts. As of December 31, 2025, substantially all loans from our money trust accounts were collateralized or guaranteed. Our money trust accounts also invest, to a lesser extent, in equity securities, including beneficiary certificates issued by financial investment companies with a collective investment license. On an SKAS basis, as of December 31, 2025, equity securities in our money trust accounts amounted to ￦12,357 billion, which accounted for 16.4% of our total money trust assets. Of this amount, ￦12,286 billion was from specified money trusts and ￦71 billion was from unspecified money trusts. If the income from a money trust for which we provide a guarantee is less than the amount of the payments we have guaranteed, we will need to pay the amount of the shortfall with funds from special reserves maintained with respect to trust accounts followed by basic fees from that money trust and funds from our general banking operations. In 2023, 2024 and 2025, we made no payment from our banking accounts to cover shortfalls in our guaranteed trusts. On an SKAS basis, we derived trust fees with regard to trust account management services (including those fees related to property trust management services) of ￦212 billion in 2023, ￦146 billion in 2024 and ￦221 billion in 2025. Property Trust Management Services We also offer property trust management services, where we manage non-monetary assets in return for a fee. Non-monetary assets include mostly securities, but can also include other liquid receivables and real estate. Under these arrangements, we render custodial services for the property in question and collect fee income in return. In 2025, our basic property trust fees ranged from 0.001% to 1.0% of total assets under management depending on the type of trust accounts. On an SKAS basis, as of December 31, 2025, the aggregate balance of our property trusts was ￦32,522 billion, compared to ￦30,069 billion as of December 31, 2024. Under IFRS, the property trusts are not consolidated within our financial statements. 56 Table of Contents Investment Trust Management Through KB Asset Management and KB Securities, we offer investment trust products to customers and manage the funds invested by them in investment trusts. As of December 31, 2025, KB Asset Management and KB Securities had an aggregate of ￦125,009 billion of investment trust assets under management. Insurance Non-Life Insurance Through a series of acquisitions of stock between June 2015 and December 2016 for an aggregate of ￦1.1 trillion, followed by a tender offer in May 2017 and a comprehensive stock swap effected in July 2017, we acquired all of the outstanding shares of KB Insurance Co., Ltd. (formerly named LIG Insurance Co., Ltd.), as a result of which KB Insurance became our wholly-owned subsidiary. KB Insurance offers a variety of non-life insurance products, including principally the following: • Long-term insurance products. Long-term insurance products are sold to retail customers and provide protection against various types of losses, with specified coverage periods of at least three years and ranging up to 30 years or ending at specified ages. Unlike general property and casualty insurance products, which usually have a coverage period of one year or less and only have pure protection features, substantially all long-term insurance policies in Korea also have an integrated savings feature. KB Insurance offers a broad range of long-term insurance products covering the policyholder’s injuries, illnesses, long-term care, disabilities, accidents, property losses or other events. • Automobile insurance products. Automobile insurance products are sold to both retail and institutional customers and generally provide coverage for the following types of losses resulting from the policyholder’s ownership or use of an insured automobile: (i) liability to third parties for bodily injuries or death as well as damage to automobiles or other personal property; and (ii) the policyholder’s own bodily injuries and automobile damage or theft. KB Insurance’s automobile insurance policies typically have a coverage period of one year or less. • General property and casualty insurance products. General property and casualty insurance products are sold to institutional customers and include the following: (i) fire and allied lines insurance policies, providing protective coverage for damage to buildings and facilities and their contents against fire, flood, storm, lightening, explosion, theft and other risks; (ii) marine insurance policies, providing protective coverage for damage to marine vessels and their cargo; and (iii) specialty insurance policies, which cover various other types of specified risks faced by businesses, including liabilities and business interruption. The following table sets forth certain information regarding the operations of KB Insurance, on a standalone basis, as of the dates or for the periods indicated: As of or for the Year Ended December 31, 2023 2024 2025 (in billions of Won, except as otherwise indicated) Total policies in force (in thousands) 20,876 23,012 25,023 Number of new policies sold (in thousands) 9,595 12,233 13,051 Gross direct written premiums(1) ￦ 12,752 ￦ 13,545 ￦ 14,348 Long-term insurance 8,383 9,131 9,863 Automobile insurance 2,938 2,967 3,041 General property and casualty insurance 1,249 1,336 1,350 Other 182 111 93 Net earned premiums(2) ￦ 11,340 ￦ 12,149 ￦ 12,923 Loss ratio(3) 82.15 % 80.55 % 82.79 % Solvency ratio(4) 215.94 % 186.42 % 191.54 % 57 Table of Contents (1) The amount of direct written premiums recognized in a specified period in respect of policies in force during such period, on a standalone basis. (2) The sum of (i) gross direct written premiums for the specified period, (ii) reinsurance premium income for such period, (iii) return of surrender refunds for such period and (iv) total unearned premiums deferred from the previous period, less the sum of (x) reinsurance expenses for the specified period, (y) surrender refunds for such period and (z) total unearned premiums deferred to the next period, on a standalone basis. (3) The ratio of (i) total claims paid for the specified period to (ii) net earned premiums for such period, on a standalone basis. (4) Calculated in accordance with the applicable requirements of the Financial Supervisory Service. See “—Regulation and Supervision—Principal Regulations Applicable to Insurance Companies—Capital Adequacy.” KB Insurance operates a multi-channel distribution platform in Korea, comprising agencies (which are independent insurance brokerage companies), a network of financial consultants, bancassurance arrangements with commercial banks and other financial institutions, direct marketing channels (including home shopping television networks and the Internet) and a corporate sales force. As of December 31, 2025, KB Insurance had W42,204 billion of general account investment assets on a standalone basis, of which domestic debt securities, loans, beneficiary certificates, domestic equity securities and overseas securities accounted for 39.6%, 21.6%, 18.1%, 0.4% and 9.2%, respectively. Life Insurance In January 2023, in order to maximize the synergy effects in our life insurance operations, we merged the Former KB Life Insurance with and into Prudential Life Insurance, with the surviving entity being called KB Life Insurance Co., Ltd. Through KB Life Insurance, we offer a variety of individual and group life insurance products, including annuities, savings insurance, variable life insurance, whole life insurance and term life insurance as well as health insurance. We utilize our multi-channel distribution platforms to market these products, which includes sales through agencies, financial consultants, telemarketers and bancassurance arrangements with commercial banks and other financial institutions. In 2025, KB Life Insurance generated gross premium of ￦5,008 billion, on a standalone basis. As of December 31, 2025, KB Life Insurance had ￦27,253 billion of general account investment assets on a standalone basis, of which domestic debt securities, beneficiary certificates, loans, domestic equity securities and overseas securities accounted for 79.0%, 12.2%, 0.0%, 0.0% and 5.4%, respectively. Based on preliminary data, which are subject to change, KB Life Insurance had a solvency ratio of 272.19% as of December 31, 2025. For further information regarding our insurance-related assets and liabilities, see Note 38 of the notes to our consolidated financial statements included elsewhere in this annual report. Bancassurance Through the bancassurance operations of Kookmin Bank, we offer insurance products of other institutions to retail customers in Korea. We currently market a wide range of bancassurance products and seek to generate additional fee-based revenues by expanding our offering of these products. Currently, our bancassurance business has alliances with 22 life insurance companies (including our subsidiary, KB Life Insurance) and 10 non-life insurance companies (including our subsidiary, KB Insurance) and offers 108 different products through our branch network. These products are composed of 91 types of life insurance policies, such as annuities, savings insurance and variable life insurance, and 17 types of non-life insurance products. In 2025, our commission income from our bancassurance business amounted to ￦172.5 billion. 58 Table of Contents Consumer Finance We provide consumer finance services through KB Capital Co., Ltd. We acquired 52.02% of the outstanding shares of KB Capital (formerly known as Woori Financial Co., Ltd.) in March 2014 for ￦280 billion. We conducted a tender offer in May 2017, through which we acquired 5,949,300 shares of KB Capital at ￦27,500 per share, increasing our shareholding in KB Capital to 79.70%. We subsequently acquired the remaining outstanding shares of KB Capital in exchange for 2,269,057 shares of common stock of our company through a comprehensive stock swap effected in July 2017, as a result of which KB Capital became a wholly-owned subsidiary. KB Capital provides leasing services and installment finance services for various products, including automobiles, heavy machineries and medical equipment, as well as microlending services. We expect KB Capital to continue to expand our customer base by providing a variety of non-banking financial services to retail customers, as well as synergies through coordinated business operations with our other subsidiaries, including Kookmin Bank. Management of the National Housing and Urban Fund The National Housing and Urban Fund is a government fund that provides financial support to low-income households in Korea by providing mortgage financing and construction loans for projects to build small-sized housing. The operations of the National Housing and Urban Fund include providing and managing National Housing and Urban Fund loans, issuing National Housing and Urban Fund bonds and collecting subscription savings deposits. In February 2013, the Ministry of Land, Infrastructure and Transport (formerly the Ministry of Land, Transport and Maritime Affairs) designated us as one of the managers of the National Housing and Urban Fund. In 2025, we received total fees of ￦22 billion for managing the National Housing and Urban Fund, compared to ￦26 billion in 2024 and ￦27 billion in 2023. The financial accounting for the National Housing and Urban Fund is entirely separate from our financial accounting, and the non-performing loans and loan losses of the National Housing and Urban Fund, in general, do not impact our financial condition. Regulations and guidelines for managing the National Housing and Urban Fund are issued by the Minister of Land, Infrastructure and Transport pursuant to the Housing and Urban Fund Act. Distribution Channels Banking Branch Network As of December 31, 2025, Kookmin Bank operated a network of 771 branches and sub-branches in Korea, which was one of the largest branch networks among Korean commercial banks. An extensive branch network is important to attracting and maintaining retail customers, who use branches extensively and value convenience. We believe that our extensive branch network in Korea and retail customer base provide us with a source of stable and relatively low cost funding. Approximately 37.7% of our branches and sub-branches are located in Seoul, and approximately 21.3% of our branches are located in the six next largest cities. The following table presents the geographical distribution of our branch network in Korea as of December 31, 2025: Area Number of Branches Percentage Seoul 291 37.7 % Six largest cities (other than Seoul) 164 21.3 Other 316 41.0 Total 771 100.0 % 59 Table of Contents In addition, we have continued to implement the specialization of our branch functions. Of our branch network as of December 31, 2025, we had two branches that primarily handled large corporate banking. In order to support our branch network, we have established an extensive network of ATMs, which are located in branches and in unmanned outlets known as “autobanks.” As of December 31, 2025, we had 4,162 ATMs, and the aggregate number of transactions conducted using our ATMs amounted to approximately 205 million in 2023, 192 million in 2024 and 176 million in 2025. Other Banking Channels The following table sets forth information, for the periods indicated, on the number of users and transactions of the other banking channels for our retail and corporate banking customers, which are discussed below: For the Year Ended December 31, 2023 2024 2025 Internet banking: Number of users(1) 28,767,620 29,780,549 31,237,353 Number of transactions (thousands)(2) 4,403,908 4,671,153 5,593,537 Phone banking: Number of users(3) 5,075,039 5,071,952 5,067,341 Number of transactions (thousands)(2) 43,922 37,602 33,594 Mobile banking: Number of users(4) 20,909,030 22,222,534 24,184,426 Number of transactions (thousands)(2) 21,876,061 24,912,884 25,161,640 (1) Number of users is defined as the total cumulative number of retail and corporate customers who have registered through our branch offices to use our Internet banking services. (2) Number of transactions includes balance and transaction inquiries, fund transfers and other transactions. (3) Number of users is defined as the total cumulative number of retail and corporate customers who have registered through our branch offices to use our phone banking services. (4) Number of users is defined as the total cumulative number of retail customers who have registered through our branch offices, or the customers’ smartphones, to use our mobile banking services. Internet Banking Our goal is to consolidate our position as a market leader in online banking. Our Internet banking services currently include: • basic banking services, including fund transfers, balance and transaction inquiries, pre-set automatic transfers, product inquiries, online bill and tax payments and foreign exchange services; • investment services, including opening deposit accounts and investing in funds; • processing of loan applications; • electronic certification services, which permit users to authenticate their identity and transactions on a confidential basis through digital signatures; and • wealth management and advisory services, including financial planning and real estate information services. Phone Banking We offer a variety of phone banking services, including inter-account fund transfers, balance and transaction inquiries, customer service inquiries and bill payments. We also have call centers, which we primarily use to: • advise clients with respect to deposits, loans and credit cards and to provide our customers a way to report any emergencies with respect to their accounts; 60 Table of Contents • allow our customers to conduct transactions with respect to their accounts, such as balance and transfer inquiries, transfers or payments and opening accounts; and • conduct telemarketing to our customers or potential customers to advertise products or services. Mobile Banking “KB Star Banking,” our mobile banking application for smartphones, allows our customers the flexibility to conduct a variety of financial transactions, including balance and transaction inquiries, fund transfers and asset management, anywhere at any time. It is also intended to act as a hub for all of our finance services, including securities transactions and insurance, by providing our customers with access to the key services offered by a number of our subsidiaries, such as KB Securities and KB Insurance. Our mobile banking services currently include: • basic banking services, including fund transfers, balance and transaction inquiries, bill payments and foreign exchange services; • investment services, including investing in savings deposits that are designed specifically for and offered to mobile banking customers; • wealth management services, including investment portfolio management services and retirement and pension planning services; and • processing of loan applications and bancassurance services. We also continue to develop innovative mobile applications that cater to specific customer needs and lifestyles. For example, we offer “KB StarTeens,” a service offered through our main KB Star Banking mobile application that provides easy-to-use banking services as well as a variety of non-banking services to our teenage customers. We also offer a range of other mobile applications, including “Liiv Talk Talk,” our mobile peer-to-peer payment and messaging application, “KB Liiv M,” a mobile virtual network operator (MVNO) that offers a fusion of finance and mobile services and “KB Real Estate,” our new cloud-based real estate application that provides various information on real properties. We also offer MyData services through several channels including KB Star Banking, our mobile banking application, KB Pay, our credit card services application, KB M-able, our securities trading application, and KB Insurance, our insurance service application. Other Channels We provide cash management services, which include automatic transfers, connection services to other financial institutions, real-time firm banking, automatic fund concentration and transmittal of trading information. Distribution Channels for Other Services Through our non-banking subsidiaries, we operate a network of dedicated branches and other distribution channels through which our customers can access credit card, securities brokerage, insurance and consumer finance products and services. The following table sets forth information regarding the number and geographical distribution of the branches in Korea operated by KB Kookmin Card, KB Securities and KB Insurance as of December 31, 2025: Area KB Kookmin Card KB Securities KB Insurance Seoul 5 26 52 Six largest cities (other than Seoul) 4 16 73 Other 5 32 140 Total 14 74 265 61 Table of Contents Our other non-banking subsidiaries also operate a number of branches in Seoul and other areas. We also provide credit card, securities brokerage, insurance and consumer finance services through dedicated call centers, mobile applications and Internet websites operated by KB Kookmin Card, KB Securities, KB Insurance, KB Life Insurance and KB Capital. Competition We compete principally with other financial holding companies and nationwide commercial banks, as well as regional banks, development banks, specialized banks and branches of foreign banks operating in Korea. We also compete with other types of financial institutions in Korea, including savings institutions (such as mutual savings and finance companies and credit unions and credit cooperatives), investment institutions (such as merchant banking corporations), life insurance companies, non-life insurance companies, securities companies and other financial investment companies. Competition in the domestic banking industry is generally based on the types and quality of the products and services offered, including the size and location of retail networks, the level of automation and interest rates charged and paid. Competition has increased significantly in our traditional core businesses, retail banking, small- and medium-sized enterprise banking and credit card lending, contributing to some extent to the asset quality deterioration in retail and small- and medium-sized loans. As a result, our margins on lending activities may decrease in the future. Furthermore, companies in the banking and financial industries have increasingly adopted new technologies, including artificial intelligence and data science, to provide innovative services to their customers and differentiate themselves from competitors. For example, the introduction of Internet-only banks in Korea has led to an increase in competition in the Korean banking industry. Internet-only banks operate without branches and conduct most of their operations through electronic means, which enables them to minimize costs and offer customers higher interest rates on deposits or lower lending rates. In April 2017, Kbank, the first Internet-only bank in Korea, commenced operations. Kakao Bank, another Internet-only bank, in which Kookmin Bank held a 4.9% equity interest as of December 31, 2025, commenced operations in July 2017, while Toss Bank, another Internet-only bank, commenced operations in October 2021. In recent years, the Financial Services Commission announced various measures designed to encourage competition within the banking industry, including its intention to issue more banking licenses (including those for Internet-only banks) and actively permitting the conversion of existing regional or savings banks into nationwide commercial banks. For example, in May 2024, the Financial Services Commission approved DGB Daegu Bank’s application to convert from a regional bank into a nationwide commercial bank. DGB Daegu Bank subsequently became Korea’s seventh commercial bank and rebranded itself as iM Bank in June 2024. In the Korean insurance industry, competition is based on a number of factors, including brand recognition, service, product features and pricing, investment performance and perceived financial strength. There has been downward pressure in recent years on margins of insurance products as some of our competitors have sought to obtain or maintain market share by reducing margins and increasing marketing efforts. As the Korean non-life insurance and life insurance sectors continue to mature, they may experience a slowdown in growth as well as a stagnation in market penetration. Due to these and other factors, we believe that competition in the Korean insurance industry will likely remain intense in the future. In addition, we believe that various structural changes to the Korean financial investment industry in recent years are likely to lead to increased competition among financial institutions in Korea. For example, an increase in foreign investments made by Korean investors and the emergence of alternative trading systems in recent years have been reshaping the Korean financial investment market, as well as the competitive strategies of financial institutions. An increase in the overall trading volumes of these investments in recent years has prompted certain securities firms to offer very low commission rates on foreign investments to capitalize on such 62 Table of Contents increase, thereby further intensifying competition. In March 2025, Nextrade emerged as the first alternative to the Korea Exchange, offering extended trading hours and lower fees, although its operations remain subject to certain regulatory restrictions. Moreover, the Korean financial industry is undergoing significant consolidation. The number of nationwide commercial banks in Korea has decreased from 16 as of December 31, 1997, to seven as of December 31, 2025. A number of significant mergers and acquisitions in the financial industry have taken place in Korea in recent years, including Hana Financial Group’s acquisition of a controlling interest in Korea Exchange Bank in 2012 and the subsequent merger of Hana Bank into Korea Exchange Bank in 2015. In addition, as part of the Korean government’s plans to privatize Woori Finance Holdings Co., Ltd. (the former financial holding company of Woori Bank), certain subsidiaries of Woori Finance Holdings were sold to other financial institutions and Woori Finance Holdings itself was merged into Woori Bank in 2014, which established a new financial holding company, Woori Financial Group Inc., in January 2019. In the insurance sector, China’s Anbang Insurance Group acquired controlling interests in TONGYANG Life Insurance Co., Ltd. and Allianz Life Insurance Korea Co., Ltd. in 2015 and 2016, respectively, while Mirae Asset Life Insurance Co., Ltd. acquired PCA Life Insurance Co., Ltd. in 2017. Meanwhile, Orange Life Insurance, Ltd. (formerly known as ING Life Insurance Korea, Ltd.) became a wholly-owned subsidiary of Shinhan Financial Group following the acquisition of equity interests by Shinhan Financial Group in February 2019 and January 2020, and subsequently merged with and into Shinhan Life Insurance Co., Ltd. in July 2021. In 2022, Shinhan Financial Group also acquired BNP Paribas Cardif General Insurance, which was subsequently renamed Shinhan EZ General Insurance. In July 2025, Woori Financial Group acquired 75.3% of the shares of TONGYANG Life Insurance Co., Ltd. and 100.0% of the shares of ABL Life Insurance Co., Ltd. In the securities sector, in 2016, Mirae Asset Securities Co., Ltd. acquired a 43% interest in KDB Daewoo Securities Co., Ltd., which subsequently merged with and into Mirae Asset Securities to create Mirae Asset Daewoo Securities Co., Ltd. (which was renamed Mirae Asset Securities Co., Ltd. in March 2021), one of the largest securities companies in Korea in terms of capital. In 2024, Woori Financial Group acquired Korea Foss Securities Co., Ltd. by merging it with its then wholly-owned subsidiary Woori Investment Bank Co., Ltd., with Korea Foss Securities Co., Ltd. remaining as the surviving entity, which was subsequently renamed Woori Investment Securities Co., Ltd. We expect that consolidation in the Korean financial industry will continue. The financial institutions resulting from such consolidation may, by virtue of their increased size and business scope, provide significantly greater competition for us. We intend to review potential acquisition opportunities as they arise. We cannot guarantee that we will not be involved in any future mergers or acquisitions. We also believe that foreign financial institutions, many of which have greater experience and resources than we do, may seek to compete with us in providing financial products and services either by themselves or in partnership with existing Korean financial institutions. Information Technology We regularly implement various IT system-related initiatives and upgrades at the group and subsidiary level. We believe that continual improvement of our IT systems is crucial in supporting our operations and management and providing high-quality customer service. Accordingly, we continue to upgrade and improve our systems through various activities, including projects to develop next generation banking systems for Kookmin Bank, further strengthen system security and timely develop and implement various new IT systems and services (including group-wide software) that support our business operations and risk management activities. Our mainframe-based banking and X86 Linux-based credit card systems are designed to ensure continuity of services even where there is a failure of the host data center due to a natural disaster or other accidents by utilizing backup systems in disaster recovery data centers. In addition, through the implementation of Parallel Sysplex, a “multi-CPU system,” our bank and credit card systems are designed and operated to be able to process transactions without material interruption in the event of CPU failure. From 2019 to 2020, we implemented a next-generation credit card IT system that applies an enhanced platform to ensure greater flexibility and versatility, as well as a 63 Table of Contents banking IT system designed to promote digital transformation and innovation in our IT infrastructure. In addition, we implemented new technologies, including Multi Channel Integration and Enterprise Application Integration systems, to standardize our IT system and better manage IT system operational risk. The integrity of our IT systems, and their ability to withstand potential catastrophic events (such as natural calamities and internal system failures), are crucial to our continuing operations. We currently test our disaster recovery systems on a quarterly basis using a new disaster recovery system that has been implemented to ensure the continuity of our operations. For additional information, see “Item 11. Quantitative and Qualitative Disclosures about Market Risk—Operational Risk Management” and “Item 16K. Cybersecurity.” In 2025, we spent approximately ￦980 billion for our IT system implementation and operations, including expenses related to the construction of new IT systems, implementation of hardware and software technologies and other new systems, as well as related labor costs. As of December 31, 2025, we employed a total of 2,312 full-time employees in our IT operations. Assets and Liabilities The tables below set out selected financial highlights regarding our operations and our assets and liabilities. Except as otherwise indicated, amounts as of and for the years ended December 31, 2023, 2024 and 2025 are presented on a consolidated basis under IFRS. Certain information with respect to our loan portfolio and the asset quality of our loans is presented below on a basis consistent with certain requirements of the Financial Services Commission applicable to Korean financial institutions, which differs (as described below where applicable) from the presentation of such information in our financial statements prepared in accordance with IFRS, as we believe that such alternative presentation allows us to provide additional details regarding our loan portfolio and the asset quality of our loans which would be helpful to our investors. Loan Portfolio As of December 31, 2025, our total loan portfolio was ￦497,384 billion compared to ￦477,705 billion as of December 31, 2024. As of December 31, 2025, 90.4% of our total loans were Won-denominated loans compared to 90.1% as of December 31, 2024. 64 Table of Contents Loan Types The following table presents loans by type as of the dates indicated. Except where we specify otherwise, all loan amounts stated below are before deduction of allowances for loan losses. Total loans reflect our loan portfolio, including past due amounts. As of December 31, 2024 2025 (in billions of Won) Domestic: Corporate Small- and medium-sized enterprise ￦ 161,239 ￦ 167,873 Large corporate(1) 62,364 70,558 Retail Mortgage and home equity 136,130 142,805 Other consumer 57,673 58,840 Credit cards 23,443 23,111 Total domestic 440,849 463,187 Foreign 36,856 34,197 Total gross loans ￦ 477,705 ￦ 497,384 (1) Large corporate loans include ￦2,635 billion and ￦1,387 billion of loans to the Korean government and government related agencies (including the Korea Deposit Insurance Corporation) as of December 31, 2024 and 2025, respectively. Loan Concentrations On a consolidated basis, our exposure to any single person (including an individual or an entity) or any single borrower (any single person together with any individual and/or entity that shares the same credit risk with such person) is limited by law to 20% and 25%, respectively, of our “net aggregate equity capital,” as defined under the Enforcement Decree of the Financial Holding Company Act. See “—Supervision and Regulation—Principal Regulations Applicable to Financial Holding Companies—Financial Exposure to Any Individual Customer and Major Investor.” In addition, Kookmin Bank’s exposure to any single person or any single borrower is limited by the Bank Act to 20% and 25%, respectively, of its total Tier I and Tier II capital. Starting in 2024, Basel III also restricts the total exposure of a bank to any single counterparty or counterparty group to 25% (or 20% in the case of domestic or global systemically important banks) of the bank’s total Tier I capital. Loan Concentration by Industry The following table presents the aggregate balance of our domestic and foreign corporate loans, by industry concentration, as of December 31, 2024 and 2025: As of December 31, 2024 2025 Industry Amount % Amount % (in billions of Won, except percentages) Services ￦ 113,801 44.9 % ￦ 116,913 44.1 % Manufacturing 55,302 21.8 58,800 22.2 Wholesale and retail 30,732 12.1 31,383 11.8 Financial institutions 28,149 11.1 33,131 12.4 Construction 6,709 2.6 6,269 2.4 Public sector 2,317 0.9 2,615 1.0 Others 16,394 6.6 16,253 6.1 Total ￦ 253,404 100.0 % ￦ 265,364 100.0 % 65 Table of Contents Maturity Analysis We typically roll over our working capital loans and unsecured consumer loans (other than those payable in installments) after we conduct our normal loan review in accordance with our loan review procedures. Working capital loans may generally be extended on an annual basis for an aggregate term of five years and unsecured consumer loans may generally be extended for another term of up to 12 months for an aggregate term of 10 years. The following table sets out the scheduled maturities (time remaining until maturity) of our loan portfolio as of December 31, 2025. The amounts disclosed are before deduction of allowances for loan losses: 1 Year or Less Over 1 Year But Not More Than 5 Years Over 5 Years But Not More Than 15 Years Over 15 Years Total (in billions of Won) Domestic: Corporate Small- and medium-sized enterprises ￦ 122,894 ￦ 37,396 ￦ 6,039 ￦ 1,544 ￦ 167,873 Large corporate 45,117 20,103 3,402 1,936 70,558 Total corporate 168,011 57,499 9,441 3,480 238,431 Retail Mortgage and home equity 19,564 18,816 5,767 98,658 142,805 Other consumer 33,589 14,870 4,790 5,591 58,840 Total retail 53,153 33,686 10,557 104,249 201,645 Credit cards 19,242 3,695 174 — 23,111 Total domestic 240,406 94,880 20,172 107,729 463,187 Foreign: 14,829 12,608 5,651 1,109 34,197 Total ￦ 255,235 ￦ 107,488 ￦ 25,823 ￦ 108,838 ￦ 497,384 Interest Rate Sensitivity The following table shows, as of December 31, 2025, the total amount of loans due after one year, which have fixed interest rates and variable or adjustable interest rates: Fixed Rate(1) Variable or Adjustable Rates(2) Total (in billions of Won) Domestic: Corporate Small- and medium-sized enterprises ￦ 25,814 ￦ 19,165 ￦ 44,979 Large corporate 12,911 12,530 25,441 Total corporate 38,725 31,695 70,420 Retail Mortgage and home equity 23,321 99,920 123,241 Other consumer 9,968 15,283 25,251 Total retail 33,289 115,203 148,492 Credit cards 3,869 — 3,869 Total domestic 75,883 146,898 222,781 Foreign: 11,556 7,812 19,368 Total ￦ 87,439 ￦ 154,710 ￦ 242,149 (1) Fixed rate loans are loans for which the interest rate is fixed for the entire term. (2) Variable or adjustable rate loans are loans for which the interest rate is not fixed for the entire term. 66 Table of Contents For additional information regarding our management of interest rate risk, see “Item 11. Quantitative and Qualitative Disclosures about Market Risk—Market Risk Management—Market Risk Management for Non-Trading Activities.” Credit Exposures to Companies in Workout, Restructuring or Rehabilitation Workout is a voluntary procedure through which we, together with the borrower and its other creditors, seek to restore the borrower’s financial stability and viability. Previously, workouts were regulated under a series of Corporate Restructuring Promotion Acts, which expired on June 30, 2018. In September 2018, the National Assembly of Korea adopted a new Corporate Restructuring Promotion Act, which became effective in October 2018 and expired as scheduled in October 2023. In December 2023, the National Assembly enacted another new Corporate Restructuring Promotion Act, which was subsequently amended in October 2025 and will remain effective until December 2026. Under the Corporate Restructuring Promotion Act, creditors of a financially troubled borrower may participate in a creditors’ committee, which is authorized to prohibit such creditors from exercising their rights against the borrower, commence workout procedures and approve or make revisions to a reorganization plan prepared by the lead creditor bank, the borrower and external experts. The composition of the creditors’ committee is determined at the initial meeting of the committee by the approval of creditors holding not less than 75% of the borrower’s total outstanding debt held by creditors who were notified of the initial meeting of the committee. Although creditors that are not financial institutions or hold less than 1% of the total outstanding debt of the borrower need not be notified of the initial meeting of the creditors’ committee, if such creditors wish to participate, they may not be excluded. Any decision of the creditors’ committee requires the approval of creditors holding not less than 75% of the total outstanding debt of the borrower. However, if a single creditor holds 75% or more of the borrower’s total outstanding debt held by the creditors comprising the creditors’ committee, any decision of the creditors’ committee requires the approval of not less than 40% of the total number of creditors (including such single creditor) comprising the committee. An additional approval of creditors holding not less than 75% of the secured debt is required with respect to the borrower’s debt restructuring. Once approved, any decision made by the creditors’ committee is binding on all creditors of the borrower, with the exception of those creditors that were excluded by a resolution of the committee at its initial meeting and those who exercised their right to request that their claims be purchased. Creditors that voted against commencement of workout, approval or revision of the reorganization plan, debt restructuring, granting of new credit, extension of the joint management process or other resolutions of the committee have the right to request the creditors that voted in favor of such matters to purchase their claims at a mutually agreed price. In the event that the parties are not able to agree on the terms of purchase, a coordination committee consisting of experts would determine the terms. The creditors that oppose a decision made by the coordination committee may request a court to change such decision. Upon approval of the workout plan, a credit exposure is initially classified as precautionary or lower and thereafter cannot be reclassified to be higher than precautionary with limited exceptions. If a corporate borrower is in workout, restructuring or rehabilitation, we take the status of the borrower into account in valuing our loans to and collateral from that borrower for purposes of establishing our allowances for credit losses. Korean law also provides for corporate rehabilitation proceedings, which are court-supervised procedures to rehabilitate an insolvent company. Under these procedures, a restructuring plan is adopted at a meeting of interested parties, including creditors of the company. Such restructuring plan is subject to court approval. A portion of our loans to and debt securities of corporate customers are currently in workout, restructuring or rehabilitation. As of December 31, 2025, ￦555 billion or 0.08% of our total loans and debt securities were in workout, restructuring or rehabilitation. This included ￦126 billion of loans to large corporate borrowers and ￦429 billion of loans to and debt securities of small- and medium-sized enterprises. 67 Table of Contents Provisioning Policy Under IFRS 9 Financial Instruments, or IFRS 9, we establish allowances for credit losses based on expected credit losses instead of incurred losses by assessing changes in expected credit losses and recognizing such changes as impairment loss (or reversal of impairment loss) in profit or loss. According to the three stages of credit risk deterioration under IFRS 9, the allowance required to be established with respect to a loan or receivable since its initial recognition is (i) the amount of the expected 12-month credit loss for stage 1 loans or receivables and (ii) the expected lifetime credit loss for stages 2 and 3 loans or receivables. If additions or changes to the allowances for loan losses are required, then we record a provision for loan losses, which is included in impairment losses on credit loss and treated as a charge against current income. Credit exposures that we deem to be uncollectible, including actual loan losses, net of recoveries of previously charged-off amounts, are charged directly against the allowances for loan losses. We generally consider the following loans to be impaired loans: • loans that are past due by 90 days or more; • loans that are subject to legal proceedings related to collection; • loans to a borrower that has received a warning from the Korea Credit Information Services indicating that such borrower has exhibited difficulties in making timely payments of principal and interest; • loans to corporate borrowers that are rated C or D according to Kookmin Bank’s internal credit ratings for large companies or small-and medium-sized enterprises; • loans for which account-specific provisions have been made resulting from a significant perceived decline in credit quality; and • loans with respect to which the amount of principal and interest payable has been materially decreased due to restructuring. We regularly evaluate the adequacy of the overall allowances for loan losses and we believe that the allowances for loan losses reflect our best estimate of probable loan losses as of each balance sheet date. Non-Performing Loans Non-performing loans are defined as loans that are past due by 90 days or more. These loans are generally classified as “substandard” or below. For further information on the classification of non-performing loans under Korean regulatory requirements, see “—Regulatory Reserve for Credit Losses” below. The following table shows, as of the dates indicated, certain details of our total non-performing loan portfolio: As of December 31, 2024 2025 (in billions of Won, except percentages) Total non-performing loans ￦ 2,646 ￦ 2,587 As a percentage of total loans 0.6 % 0.5 % 68 Table of Contents Analysis of Non-Performing Loans The following table sets forth, as of the dates indicated, our total non-performing loans by type of borrower: As of December 31, 2024 2025 Amount % Amount % (in billions of Won, except percentages) Domestic: Corporate Small- and medium-sized enterprise ￦ 480 18.1 % ￦ 479 18.5 % Large corporate 36 1.3 42 1.6 Total corporate 516 19.4 521 20.1 Retail Mortgage and home equity 216 8.2 262 10.1 Other consumer 290 11.0 302 11.7 Total retail 506 19.2 564 21.8 Credit cards 114 4.3 75 2.9 Total domestic 1,136 42.9 1,160 44.8 Foreign: 1,510 57.1 1,427 55.2 Total non-performing loans ￦ 2,646 100.0 % ￦ 2,587 100.0 % Top 20 Non-Performing Loans As of December 31, 2025, our 20 largest non-performing loans accounted for 8.5% of our total non-performing loan portfolio. The following table shows, as of December 31, 2025, certain information regarding our 20 largest non-performing loans: Industry Gross Principal Outstanding Allowances for Loan Losses(1) (in billions of Won) Borrower A Construction ￦ 28 ￦ 16 Borrower B Services 20 1 Borrower C Financial institutions 20 14 Borrower D Others 19 5 Borrower E Services 16 5 Borrower F Others 137 Borrower G Services 12 6 Borrower H Wholesale and retail 11 3 Borrower I Manufacturing 10 6 Borrower J Manufacturing 9 7 Borrower K Services 8 1 Borrower L Services 7 3 Borrower M Construction 7 3 Borrower N Services 7 1 Borrower O Manufacturing 7 2 Borrower P Services 6 2 Borrower Q Construction 6 6 Borrower R Services 5 1 Borrower S Services 5 3 Borrower T Financial institutions 5 3 Total ￦ 221 ￦ 95 (1) If the estimated recovery value of collateral for a non-performing loan is sufficient compared to the outstanding loan balance, we record no allowances for loan losses for such non-performing loan. 69 Table of Contents Non-Performing Loan Strategy One of our primary objectives is to prevent our loans from becoming non-performing. Through our corporate credit rating systems, we believe that we have reduced our risks relating to future non-performing loans. Our credit rating systems are designed to prevent our loan officers from extending new loans to borrowers with high credit risks based on the borrower’s credit rating. Our early warning system is designed to bring any sudden increase in a borrower’s credit risk to the attention of our loan officers, who then closely monitor such loans. See “Item 11. Quantitative and Qualitative Disclosures about Market Risk—Credit Risk Management—Credit Review and Monitoring.” Notwithstanding the above, if a loan becomes non-performing, an officer at the branch level responsible for monitoring non-performing loans will commence a due diligence review of the borrower’s assets, send a notice either demanding payment or stating that we will take legal action and prepare for legal action. At the same time, we also initiate our non-performing loan management process, which begins with: • identifying loans subject to a proposed sale by assessing the estimated losses from such sale based on the estimated recovery value of collateral, if any, for such non-performing loans; • identifying loans subject to charge-off based on the estimated recovery value of collateral, if any, for such non-performing loans and the estimated rate of recovery of unsecured loans; and • on a limited basis, identifying corporate loans subject to normalization efforts based on the cash-flow situation of the borrower. Once the details of a non-performing loan are identified, we pursue early solutions for recovery. While the overall process is the responsibility of Kookmin Bank’s Credit Division, actual recovery efforts on non-performing loans are handled at the operating branch level. In addition, we use the services of KB Kookmin Card’s wholly-owned loan collection subsidiary, KB Credit Information Co., Ltd. (which KB Kookmin Card acquired from us in June 2023), which receives payments from recoveries made on charged-off loans and certain loans that are overdue for over three months (28 days on average in the case of credit card loans). KB Credit Information has approximately 125 employees, including legal experts and management employees. The fees that it receives are based on the amounts of non-performing and charged-off loans that are recovered. In 2023, 2024 and 2025, the amount recovered was ￦316 billion, ￦341 billion and ￦359 billion, respectively. Methods for resolving non-performing loans include the following: • non-performing loans are managed by the operating branches of Kookmin Bank until such loans are charged off; • a demand note is dispatched by mail if payment is generally one month past due; • calls and visits are made by Kookmin Bank’s operating branches to customers encouraging them to make payments; • borrowers who are past due on payments of interest and principal are registered on the Korea Credit Information Services’ database of non-performing loans; • for unsecured loans other than credit card loans, the loans are transferred to KB Credit Information for collection on a case-by-case basis; • for secured loans, actions to enforce or protect the security interests (including foreclosure and auction of the collateral) are commenced within five months of such loans becoming past due; and • charged-off loans are given to KB Credit Information for collection, except for loans where the cost of collection exceeds the possible recovery or where the statute of limitations for collection has expired. 70 Table of Contents In addition, credit card loans that are in arrears for over 28 days on average are transferred to KB Credit Information for collection. If a loan becomes non-performing, it is managed by an operating branch of Kookmin Bank until such loan is charged off. However, in order to promote speedy recovery on loans subject to foreclosures and litigation, our policy is to permit the branch responsible for handling these loans to request one of Kookmin Bank’s regional head offices for assistance with litigation proceedings and proceedings related to foreclosure and auction of the collateral. In addition to making efforts to collect on these non-performing loans, we also undertake measures to reduce the level of our non-performing loans, which include: • selling our non-performing loans to third parties, including the Korea Asset Management Corporation; and • entering into asset securitization transactions with respect to our non-performing loans. We generally expect to suffer a partial loss on loans that we sell or securitize, to the extent such sales and securitizations are recognized under IFRS as sale transactions. Regulatory Reserve for Credit Losses If our allowances for credit losses are deemed insufficient for regulatory purposes, we are required to compensate for the difference by recording a regulatory reserve for credit losses, which is segregated within our retained earnings. Regulatory reserve for credit losses are not available for distribution to shareholders as dividends. The level of regulatory reserve for credit losses required to be recorded is equal to the amount by which our allowances for credit losses under IFRS are less than the greater of (x) the amount of expected loss calculated using the internal ratings-based approach under Basel III and as approved by the Financial Supervisory Service and (y) the required amount of credit loss reserve calculated based on standards prescribed by the Financial Services Commission. In November 2023, the Financial Services Commission amended the Regulation on Supervision of Banking Business to allow the Financial Services Commission to ask banks to increase their reserves for credit losses if the banks’ existing allowances and reserves for credit losses are deemed insufficient to cover their expected future losses, taking into account a number of factors, including the banks’ existing allowances and reserves for credit losses, expected changes in delinquency rates or the level of distressed debt and general market conditions. As of December 31, 2025, our regulatory reserve for credit losses was ￦4,190 billion. The following tables set forth the Financial Services Commission’s guidelines for the classification of loans and the minimum percentages of the outstanding principal amount of the relevant loans or balances that the credit loss reserve must cover: Loan Classification Loan Characteristics Normal Loans extended to customers that, based on our consideration of their business, financial position and future cash flows, do not raise concerns regarding their ability to repay the loans. Precautionary Loans extended to customers that (i) based on our consideration of their business, financial position and future cash flows, show potential risks with respect to their ability to repay the loans, although showing no immediate default risk or (ii) are in arrears for one month or more but less than three months. 71 Table of Contents Loan Classification Loan Characteristics Substandard (i) Loans extended to customers that, based on our consideration of their business, financial position and future cash flows, are judged to have incurred considerable default risks as their ability to repay has deteriorated; or (ii) the portion that we expect to collect of total loans (a) extended to customers that have been in arrears for three months or more, (b) extended to customers that have incurred serious default risks due to the occurrence of, among other things, final refusal to pay their debt instruments, entry into liquidation or bankruptcy proceedings or closure of their businesses, or (c) extended to customers who have outstanding loans that are classified as “doubtful” or “estimated loss.” Doubtful Loans exceeding the amount that we expect to collect of total loans to customers that: (i) based on our consideration of their business, financial position and future cash flows, have incurred serious default risks due to noticeable deterioration in their ability to repay; or (ii) have been in arrears for three months or more but less than 12 months. Estimated loss Loans exceeding the amount that we expect to collect of total loans to customers that: (i) based on our consideration of their business, financial position and future cash flows, are judged to be accounted as a loss because the inability to repay became certain due to serious deterioration in their ability to repay; (ii) have been in arrears for 12 months or more; or (iii) have incurred serious risks of default in repayment due to the occurrence of, among other things, final refusal to pay their debt instruments, liquidation or bankruptcy proceedings or closure of their business. Loan Classifications Corporate(1) Consumer Credit Card Balances(2) Credit Card Loans(3) Normal 0.85% or above(4) 1% or above 1.1% or above 2.5% or above Precautionary 7% or above 10% or above 40% or above 50% or above Substandard 20% or above 20% or above 60% or above 65% or above Doubtful 50% or above 55% or above 75% or above 75% or above Estimated loss 100% 100% 100% 100% (1) Subject to certain exceptions pursuant to the Banking Industry Supervision Regulations of Korea. (2) Applicable for credit card balances from general purchases. (3) Applicable for cash advances, card loans and revolving credit card assets. (4) Or 0.90% or above for certain industries that are more vulnerable to fluctuations in market conditions, such as the construction, retail and wholesale, lodging and food, and real estate industries. Loan Charge-Offs Basic Principles We attempt to minimize loans to be charged off by adhering to a sound credit approval process based on credit risk analysis prior to extending loans and a systematic management of outstanding loans. However, if charge-offs are necessary, we charge off loans subject to our charge-off policy at an early stage in order to maximize accounting transparency, to minimize any waste of resources in managing loans which have a low probability of being collected and to reduce our non-performing loan ratio. 72 Table of Contents Loans To Be Charged Off Loans are charged off if they are deemed to be uncollectible by falling under any of the following categories: • loans for which collection is not foreseeable due to insolvency, bankruptcy, compulsory execution, disorganization, dissolution or the shutting down of the business of the debtor; • loans for which collection is not foreseeable due to the death or disappearance of the debtor; • loans for which expenses of collection exceed the collectable amount; • loans on which collection is not possible through legal or any other means; • payments in arrears in respect of credit cards that have been overdue for a period of six months or more and have been classified as expected loss (excluding instances where there has been partial payment of the overdue balance, where a related balance is not overdue or where a charge off is not possible due to Korean regulations); and • the portion of loans classified as “estimated loss,” net of any recovery from collateral, which is deemed to be uncollectible. Procedure for Charge-off Approval In order to charge off corporate loans, an application for a charge-off must be submitted to Kookmin Bank’s Credit Management Department promptly after the corporate loan is classified as estimated loss or deemed uncollectible. The Credit Management Department refers the charge-off application to Kookmin Bank’s Audit Department for their review to ensure compliance with our internal procedures for charge-offs. Then, the Credit Management Department, after reviewing the application to confirm that it meets relevant requirements, seeks an approval from the Financial Supervisory Service for our charge-offs, which is typically granted. Once we receive approval from the Financial Supervisory Service, we must also obtain approval from our senior management to charge off those loans. With respect to credit card balances and unsecured retail loans, we follow a different process to determine which credit card balances and unsecured retail loans should be charged off, based on the length of time those loans or balances are past due. We charge off unsecured retail loans deemed to be uncollectible and credit card balances which have been overdue for a period of six months or more or which have been deemed to be uncollectible under IFRS. Treatment of Loans Charged Off Once loans are charged off, we classify them as charged-off loans and remove them from our balance sheet. These loans are managed based on a different set of procedures. We continue our collection efforts in respect of these loans, including through KB Kookmin Card’s subsidiary, KB Credit Information, although loans may be charged off before we begin collection efforts in some circumstances. If a collateralized loan is overdue, we will, typically within one year from the time that such loan became overdue (or after a longer period in certain circumstances), petition a court to foreclose and sell the collateral through a court-supervised auction. If a debtor ultimately fails to repay and the court grants its approval for foreclosure, we will sell the collateral, net of expenses incurred from the auction. 73 Table of Contents Net Charge-Offs The following table presents our net charge-offs for each of the years indicated: For the Year Ended December 31, 2023 2024 2025 Average Loans Net Charge-Offs Net Charge-Offs/ Average Loans Average Loans Net Charge-Offs Net Charge-Offs/ Average Loans Average Loans Net Charge-Offs Net Charge-Offs/ Average Loans (in billions of Won, except percentages) Domestic: Corporate Small- and medium-sized enterprise ￦ 150,011 ￦ 47 0.0 % ￦ 154,742 ￦ 26 0.0 % ￦ 162,334 ￦ 90 0.1 % Large corporate 53,939 162 0.3 59,483 304 0.5 65,477 527 0.8 Total corporate 203,950 209 0.1 214,225 330 0.2 227,811 617 0.3 Retail Mortgage and home equity 120,640 2 0.0 131,217 5 0.0 139,563 7 0.0 Other consumer 61,922 331 0.5 59,016 358 0.6 58,902 490 0.8 Total retail 182,562 333 0.2 190,233 363 0.2 198,465 497 0.3 Credit cards 22,787 555 2.4 23,365 579 2.5 23,295 520 2.2 Total domestic 409,299 1,097 0.3 427,823 1,272 0.3 449,571 1,633 0.4 Foreign: 34,045 372 1.1 36,721 395 1.1 36,746 291 0.8 Total ￦ 443,344 ￦ 1,469 0.3 % ￦ 464,544 ￦ 1,667 0.4 % ￦ 486,317 ￦ 1,924 0.4 % Investment Portfolio Investment Policy We invest in and trade Won-denominated and, to a lesser extent, foreign currency-denominated securities for our own account to: • maintain the stability and diversification of our assets; • maintain adequate sources of back-up liquidity to match our funding requirements; and • supplement income from our core lending activities. 74 Table of Contents We also invest in and trade such securities as part of the general account investments of our insurance subsidiaries that support their insurance policy liabilities. In making securities investments, we take into account a number of factors, including macroeconomic trends, industry analysis, credit evaluation and maturity in determining whether to make particular investments in securities. Our investments in securities are also subject to a number of guidelines, including limitations prescribed under the Financial Holding Company Act and the Bank Act. Under these regulations, a bank holding company may not own (i) more than 5% of the total issued and outstanding shares of another finance-related company, (ii) any shares of its affiliates, other than its direct or indirect subsidiaries or (iii) any shares of a non-finance-related company. In addition, Kookmin Bank must limit its investments in equity securities and debt securities with a redemption period of over three years (other than government bonds, the Monetary Stabilization Bonds issued by the Bank of Korea, among others) to 100.0% of its total Tier I and Tier II capital amount (less any capital deductions). Generally, Kookmin Bank is also prohibited from acquiring more than 15.0% of the shares with voting rights issued by any other corporation subject to certain exceptions. Pursuant to the Bank Act, a bank and its trust accounts are prohibited from acquiring the shares of a major shareholder (for the definition of “major shareholder,” see “—Supervision and Regulation—Principal Regulations Applicable to Banks—Financial Exposure to Any Individual Customer and Major Shareholder”) of that bank in excess of an amount equal to 1% of the sum of the bank’s Tier I and Tier II capital (less any capital deductions). Further information on the regulatory environment governing our investment activities is set out in “—Supervision and Regulation—Principal Regulations Applicable to Financial Holding Companies—Liquidity,” “—Supervision and Regulation—Principal Regulations Applicable to Financial Holding Companies—Restrictions on Shareholdings in Other Companies,” “—Supervision and Regulation—Principal Regulations Applicable to Banks—Liquidity” and “—Supervision and Regulation—Principal Regulations Applicable to Banks—Restrictions on Shareholdings in Other Companies.” The following table sets out the definitions of the three categories of securities we hold: Category Classification Financial assets at fair value through profit or loss Financial assets that are either classified as held for trading, designated by us at fair value through profit or loss upon initial recognition or required to be mandatorily measured at fair value through profit or loss. Financial assets at fair value through other comprehensive income Debt instruments held with a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets, and are consistent with representing solely payments of principal and interest on the principal amount outstanding; or Equity instruments not held for trading with the objective of generating a profit from short-term fluctuations in price or dealers’ margin, designated as financial assets at fair value through other comprehensive income. Financial assets at amortized cost Financial assets held with a business model whose objective is to hold assets in order to collect contractual cash flows, and are consistent with representing solely payments of principal and interest on the principal amount outstanding. We also hold limited balances of venture capital securities, non-marketable and restricted equity securities and derivative instruments. 75 Table of Contents Maturity Analysis The following table categorizes our debt securities by maturity and weighted average yield as of December 31, 2025: Within 1 Year Weighted Average Yield(1) Over 1 But within 5 Years Weighted Average Yield(1) Over 5 But within 10 Years Weighted Average Yield(1) Over 10 Years Weighted Average Yield(1) Total Weighted Average Yield(1) (in billions of Won, except percentages) Financial assets at fair value through other comprehensive income: Korean treasury securities and government agencies ￦ 3,362 2.50 % ￦ 13,741 3.18 % ￦ 3,227 3.36 % ￦ 23,453 2.53 % ￦ 43,783 2.79 % Debt securities issued by financial institutions 10,878 3.48 12,413 3.16 147 3.49 554 3.70 23,992 3.32 Corporate debt securities 5,073 3.19 11,898 3.19 2,552 3.97 3,693 3.15 23,216 3.27 Asset-backed securities 376 3.89 926 2.78 287 2.85 574 3.47 2,163 3.16 Other debt securities 28 0.00 — 0.00 — 0.00 131 2.69 159 2.21 Total ￦ 19,717 3.24 % ￦ 38,978 3.17 % ￦ 6,213 3.59 % ￦ 28,405 2.64 % ￦ 93,313 3.05 % Financial assets at amortized cost: Korean treasury securities and government agencies ￦ 2,598 1.12 % ￦ 2,320 1.83 % ￦ 25 4.13 % ￦ — 0.00 % ￦ 4,943 1.47 % Debt securities issued by financial institutions 5,032 3.70 5,866 3.55 1,648 6.04 1,271 1.51 13,817 3.71 Corporate debt securities 2,839 2.70 5,760 2.88 100 2.03 — 0.00 8,699 2.81 Asset-backed securities 1,691 2.34 5,288 3.00 521 2.30 51 4.30 7,551 2.81 Other debt securities 40 2.24 — 0.00 34 2.35 — 0.00 74 2.29 Total ￦ 12,200 2.72 % ￦ 19,234 2.99 % ￦ 2,328 4.92 % ￦ 1,322 1.62 % ￦ 35,084 2.97 % Total ￦ 31,917 3.04 % ￦ 58,212 3.11 % ￦ 8,541 3.95 % ￦ 29,727 2.59 % ￦ 128,397 3.03 % (1) The weighted average yield for the portfolio represents the yield to maturity for each individual security, weighted using its carrying amount (which is the amortized cost in the case of financial assets at amortized cost and the fair value in the case of financial assets at fair value through other comprehensive income). Funding We obtain funding for our lending activities from a variety of sources, both domestic and foreign. Our principal source of funding is customer deposits. In addition, we acquire funding through long-term borrowings (comprising debentures and borrowings), short-term borrowings, including borrowings from the Bank of Korea, and call money. Our primary funding strategy has been to achieve low-cost funding by increasing the average balances of low-cost retail deposits, in particular demand deposits and time deposits. We also have focused our marketing efforts on higher net worth individuals, who account for a significant portion of the assets in our retail deposit base. Customer deposits accounted for 75.1% of total funding as of December 31, 2024 and 75.4% of total funding as of December 31, 2025. 76 Table of Contents Our borrowings consist of issuances of debentures and borrowings from financial institutions, the Korean government and government-affiliated funds. The majority of our borrowings is long-term, with maturities ranging from one year to 15 years. Deposits Although the majority of our deposits are short-term, it has been our experience that the majority of our depositors generally roll over their deposits at maturity, providing us with a stable source of funding. The following table shows the average balances of our deposits and the average rates paid on our deposits for the periods indicated: 2023 2024 2025 Average Balance(1) Average Rate Paid Average Balance(1) Average Rate Paid Average Balance(1) Average Rate Paid (in billions of Won, except percentages) Demand deposits: Non-interest bearing ￦ 4,459 — ￦ 4,542 — ￦ 4,863 — Interest bearing 157,486 0.44 % 163,101 0.50 % 171,428 0.46 % Time deposits 223,607 4.00 242,061 3.77 255,654 3.12 Certificates of deposit 10,418 4.07 11,148 3.84 10,814 3.00 Average total deposits ￦ 395,970 2.57 % ￦ 420,852 2.49 % ￦ 442,759 2.08 % (1) Average balances are based on daily balances for our banking, credit card and securities operations and monthly or quarterly balances for our other operations. For a description of our retail deposit products, see “—Business—Retail Banking—Deposit-Taking Activities.” Uninsured deposits, including uninsured time deposits, are not subject to Korean regulatory reporting requirements. Notwithstanding the foregoing, the Depositor Protection Act provides insurance for certain deposits of banks in Korea through a deposit insurance system. See “—Supervision and Regulation—Principal Regulations Applicable to Banks—Deposit Insurance System.” Other than the maximum ￦100 million per individual or entity for deposits and interest in a single financial institution insured by the Korea Deposit Insurance Corporation in accordance with the foregoing, all deposits are uninsured. Although the Depositor Protection Act provides insurance for the deposits at our foreign branches, to the extent those deposits are recognized by the Korea Deposit Insurance Corporation to also be protected by the deposit insurance systems of the countries where such foreign branches are located, such deposits are not protected by the Korea Deposit Insurance Corporation under the Depositor Protection Act. The insured status of deposits in our foreign branches, the amount of which we do not consider to be material as of the date of this annual report, are determined based on the individual insurance limits enacted within local regulations, and are thus subject to differing national deposit insurance regimes. Our total uninsured deposits, including uninsured deposits at our foreign branches, amounted to ￦310,380 billion, ￦342,992 billion and ￦324,862 billion as of December 31, 2023, 2024 and 2025, respectively. 77 Table of Contents Uninsured Time Deposits The following table presents the remaining maturities of our uninsured time deposits, including uninsured time deposits at our foreign subsidiaries, as of December 31, 2025: As of December 31, 2025 (in billions of Won) Maturing within three months ￦ 122,331 After three but within six months 46,227 After six but within 12 months 71,319 After 12 months 18,101 Total ￦ 257,978 Supervision and Regulation Principal Regulations Applicable to Financial Holding Companies General The Financial Holding Company Act, last amended in September 2023, regulates Korean financial holding companies and their subsidiaries. The entities that regulate and supervise Korean financial holding companies and their subsidiaries are the Financial Services Commission and the Financial Supervisory Service. The Financial Services Commission exerts direct control over financial holding companies pursuant to the Financial Holding Company Act. Among other things, the Financial Services Commission approves the establishment of financial holding companies, issues regulations on the capital adequacy of financial holding companies and their subsidiaries, and drafts regulations relating to the supervision of financial holding companies. Following the instructions and directives of the Financial Services Commission, the Financial Supervisory Service supervises and examines financial holding companies and their subsidiaries. In particular, the Financial Supervisory Service sets requirements relating to Korean financial holding companies’ liquidity and capital adequacy ratios and establishes reporting requirements within the authority delegated under the Financial Services Commission regulations. Financial holding companies must submit quarterly reports to the Financial Supervisory Service discussing business performance, financial status and other matters identified in the Enforcement Decree of the Financial Holding Company Act. Under the Financial Holding Company Act, a financial holding company is a company which primarily engages in controlling its subsidiaries by holding equity stakes in them equal in aggregate to at least 50% of the financial holding company’s aggregate assets based on its balance sheet as of the end of the immediately preceding fiscal year. A company is required to obtain approval from the Financial Services Commission to become a financial holding company. A financial holding company may engage only in controlling the management of its subsidiaries, as well as certain ancillary activities including: • financially supporting its direct and indirect subsidiaries; • raising capital necessary for investment in its subsidiaries or providing financial support to its direct and indirect subsidiaries; • supporting the business of its direct and indirect subsidiaries, including the development and marketing of financial products; 78 Table of Contents • providing data processing, legal, accounting and other resources and services that have been commissioned by its direct and indirect subsidiaries so as to support their operations; and • any other businesses exempted from authorization, permission or approval under the applicable laws and regulations. The Financial Holding Company Act requires every financial holding company (other than a financial holding company that is controlled by another financial holding company) and its subsidiaries to obtain prior approval from the Financial Services Commission before acquiring control of another company or to file a report with the Financial Services Commission within 30 days thereafter in certain cases (including acquiring control of another financial company whose assets are less than ￦100 billion as of the end of the immediately preceding fiscal year). In addition, the Financial Services Commission must grant permission to liquidate or to merge with any other company before the liquidation or merger. A financial holding company must report to the Financial Services Commission when certain events, including the following, occur: • when the largest shareholder changes; • in the case of a bank holding company, when a major investor changes; • when the shareholding of the controlling shareholder (i.e., the “largest shareholder” or a “principal shareholder,” each as defined in the Financial Holding Company Act) or a person who has a “special relationship” with such controlling shareholder (as defined in the Enforcement Decree of the Financial Holding Company Act) changes by 1% or more of the total issued and outstanding voting shares of the financial holding company; • when it changes its corporate name; • when there is a cause for its dissolution; and • when it or its subsidiaries cease to control any of their respective direct or indirect subsidiaries by disposing of their shares of such direct or indirect subsidiary. Capital Adequacy The Financial Holding Company Act does not provide for a minimum paid-in capital requirement related to financial holding companies. However, all financial holding companies are required to maintain a specified level of solvency. In addition, with respect to the allocation of net profit earned in a fiscal term, a financial holding company must set aside in its legal reserve an amount equal to at least 10% of its net income after tax each time it pays dividends on its net profits earned until its legal reserve reaches at least the aggregate amount of its paid-in capital. A bank holding company, which is a financial holding company controlling banks or other financial institutions conducting banking business as prescribed in the Financial Holding Company Act, is required to maintain a total minimum consolidated capital adequacy ratio of 12.5% (including applicable additional capital buffers and requirements as described below), which was increased from 11.5% in May 2024. “Consolidated capital adequacy ratio” is defined as the ratio of equity capital as a percentage of risk-weighted assets on a consolidated basis, determined in accordance with the Financial Services Commission requirements that have been formulated based on Bank of International Settlements (or BIS) standards. “Equity capital,” as applicable to bank holding companies, is defined as the sum of common equity Tier I capital, additional Tier I capital and Tier II capital less any deductible items, each as defined under the Regulation on the Supervision of Financial Holding Companies. “Risk-weighted assets” is defined as the sum of credit risk-weighted assets and market risk-weighted assets. Pursuant to regulations promulgated by the Financial Services Commission commencing in 2013 to implement Basel III, Korean bank holding companies were required to maintain a minimum ratio of common 79 Table of Contents equity Tier I capital to risk-weighted assets of 3.5% and Tier I capital to risk-weighted assets of 4.5% from December 1, 2013, which minimum ratios were increased to 4.0% and 5.5%, respectively, from January 1, 2014 and increased further to 4.5% and 6.0%, respectively, from January 1, 2015. The amended regulations also require an additional capital conservation buffer of 2.5% from January 2019, as well as a potential counter-cyclical capital buffer of up to 2.5%, which is determined on a quarterly basis by the Financial Services Commission and is set at 1.0% as of the date of this annual report. Furthermore, we and Kookmin Bank were each designated as a domestic systemically important bank holding company and a domestic systemically important bank, respectively, for 2025 by the Financial Services Commission and were subject to an additional capital requirement of 1.0% in 2025. In July 2025, we and Kookmin Bank were each again designated as a domestic systemically important bank holding company and a domestic systemically important bank, respectively, for 2026, which again subjects us to an additional capital requirement of 1.0% in 2026. In addition, the Financial Services Commission has indicated that it may introduce a stress buffer capital requirement of up to 2.5%, which would require banks and bank holding companies to hold additional capital based on stress test results. The introduction of this requirement, initially planned for 2024, has been delayed multiple times and is currently not expected to be introduced until at least June 2026. All such requirements are in addition to the pre-existing requirement for minimum ratios of Tier I and Tier II capital (less any capital deductions) to risk-weighted assets set forth above. Liquidity All financial holding companies are required to match the maturities of their assets and liabilities on a non-consolidated basis in accordance with the Financial Holding Company Act in order to ensure liquidity. Financial holding companies must: • maintain a Won liquidity ratio (defined as Won assets due within one month, including marketable securities, divided by Won liabilities due within one month) of not less than 100% on a non-consolidated basis; • maintain a foreign currency liquidity ratio (defined as foreign currency liquid assets due within three months divided by foreign currency liabilities due within three months) of not less than 80% on a non-consolidated basis (except that such requirement is not applicable to a financial holding company whose foreign currency liabilities constitute less than 1% of its total assets); • maintain a maturity mismatch ratio for foreign currency assets and liabilities due within seven days (defined as foreign currency assets due within seven days less foreign currency liabilities due within seven days, divided by total foreign currency assets) of 0% or more on a non-consolidated basis (except that such requirement is not applicable to a financial holding company whose foreign currency liabilities constitute less than 1% of its total assets); • maintain a maturity mismatch ratio for foreign currency liabilities and assets due within a month (defined as foreign currency liabilities due within a month less foreign currency assets due within a month, divided by total foreign currency assets) of 10% or less on a non-consolidated basis (except that such requirement is not applicable to a financial holding company whose foreign currency liabilities constitute less than 1% of its total assets); and • make quarterly reports regarding their Won liquidity and foreign currency liquidity to the Financial Supervisory Service. Financial Exposure to Any Individual Customer and Major Investor Subject to certain exceptions, the aggregate credit (as defined in the Financial Holding Company Act, the Bank Act, the Financial Investment Services and Capital Markets Act, the Insurance Business Act, the Mutual Savings Bank Act and the Specialized Credit Financial Business Act, respectively) of a financial holding company and its direct and indirect subsidiaries that are banks, merchant banks, financial investment companies, 80 Table of Contents insurance companies, savings banks or specialized credit financial business companies (which we refer to as “Financial Holding Company Total Credit”) to a single group of companies that belong to the same conglomerate as defined in the Monopoly Regulations and Fair Trade Act will not be permitted to exceed 25% of net aggregate equity capital (as defined below). “Net aggregate equity capital” is defined under the Enforcement Decree of the Financial Holding Company Act as the sum of: (1) in case of a financial holding company, the capital amount as defined in Article 24-3(7), Item 2 of the Enforcement Decree of the Financial Holding Company Act; (2) in case of a bank, the capital amount as defined in Article 2(1), Item 5 of the Bank Act; (3) in case of a merchant bank, the capital amount as defined in Article 342(1) of the Financial Investment Services and Capital Markets Act; and (4) in case of a financial investment company, the capital amount as defined in Article 37(3) of the Enforcement Decree of the Financial Investment Services and Capital Markets Act; (5) in case of an insurance company, the capital amount as defined in Article 2, Item 15 of the Insurance Business Act; (6) in case of a savings bank, the capital amount as defined in Article 2, Item 4 of the Mutual Savings Bank Act; and (7) in case of a specialized credit financial business company, the capital amount as defined in Article 2, Item 19 of the Specialized Credit Financial Business Act; less the sum of: (1) the amount of shares of direct and indirect subsidiaries held by the financial holding company; (2) the amount of shares that are cross-held by each direct and indirect subsidiary that is a bank, merchant bank, financial investment company, insurance company, savings bank or specialized credit financial business company; and (3) the amount of shares of a financial holding company held by such direct and indirect subsidiaries that are banks, merchant banks, financial investment companies, insurance companies, savings banks or specialized credit financial business companies. The Financial Holding Company Total Credit to a single individual or judicial person may not exceed 20% of the net aggregate equity capital. In addition, the Financial Holding Company Total Credit to a shareholder holding (together with the persons who have a “special relationship” with the shareholder, as defined in the Enforcement Decree of the Financial Holding Company Act) in aggregate more than 10% of the total issued and outstanding voting shares of a financial holding company generally may not exceed the lesser of (x) 25% of the net aggregate equity capital and (y) the amount of the equity capital of the financial holding company multiplied by the shareholding ratio of the shareholder (together with the persons who have a special relationship with the shareholder). Further, the total sum of credits (as defined in the Financial Holding Company Act, the Bank Act, the Financial Investment Services and Capital Markets Act, the Insurance Business Act, the Mutual Savings Bank Act and the Specialized Credit Financial Business Act, respectively) of a bank holding company and its direct and indirect subsidiaries that are banks, merchant banks, financial investment companies, insurance companies, savings banks or specialized credit financial business companies as applicable (“Bank Holding Company Total Credit”) extended to a “major investor” (as defined below) (together with the persons who have a special relationship with that major investor) will not be permitted to exceed the lesser of (x) 25% of the net aggregate equity capital and (y) the amount of the equity capital of the bank holding company multiplied by the shareholding ratio of the major investor, except for certain cases. 81 Table of Contents “Major investor” is defined as: • a shareholder holding (together with persons who have a special relationship with that shareholder) in excess of 10% (or in the case of a bank holding company controlling regional banks only, 15%) in the aggregate of the bank holding company’s total issued and outstanding voting shares; or • a shareholder holding (together with persons who have a special relationship with that shareholder) more than 4% in the aggregate of the total issued and outstanding voting shares of the bank holding company controlling nationwide banks, where the shareholder is the largest shareholder or has actual control over the major business affairs of the bank holding company through, for example, appointment and dismissal of the officers pursuant to the Enforcement Decree of the Financial Holding Company Act. In addition, the total sum of the Bank Holding Company Total Credit granted to all of a bank holding company’s major investor must not exceed 25% of the bank holding company’s net aggregate equity capital. Furthermore, any bank holding company that, together with its direct and indirect subsidiaries, intends to extend credit to the bank holding company’s major investor in an amount equal to or exceeding the lesser of (x) the amount equivalent to 0.1% of the net aggregate equity capital and (y) ￦5 billion, in any single transaction, must obtain prior unanimous board resolutions and then, immediately after providing the credit, must file a report to the Financial Services Commission and publicly disclose the filing of the report. Restrictions on Transactions Among Direct and Indirect Subsidiaries and Financial Holding Company Generally, a direct or indirect subsidiary of a financial holding company may not extend credits (excluding the amount of corporate credit card payments issued by a direct or indirect subsidiary of a financial holding company that is engaged in the banking business) to that financial holding company. In addition, a direct or indirect subsidiary of a financial holding company may not extend credits (excluding the amount of corporate credit card payments issued by a direct or indirect subsidiary of a financial holding company that is engaged in the banking business) to other direct or indirect subsidiaries of the financial holding company in excess of 10% of its capital amount on an individual basis or to those subsidiaries in excess of 20% of its capital amount on an aggregate basis. The subsidiary extending the credit must also obtain an adequate level of collateral depending on the type of such collateral from the other subsidiaries unless the credit is otherwise approved by the Financial Services Commission. The adequate level of collateral for each type of collateral is as follows: (1) for deposits and installment savings, obligations of the Korean government or the Bank of Korea, obligations guaranteed by the Korean government or the Bank of Korea, obligations secured by securities issued or guaranteed by the Korean government or the Bank of Korea, 100% of the credit extended; (2) for obligations of municipal governments under the Local Autonomy Act, local public enterprise under the Local Public Enterprises Act and investment institutions and other quasi-investment institutions under the Basic Act on the Management of Government-Invested Institution or for obligations guaranteed by, or secured by the securities issued or guaranteed by, the aforementioned entities pursuant to the relevant regulations, 110% of the credit extended; and (3) for any property other than those set forth in paragraphs (1) and (2) above, 130% of the credit extended. Subject to certain exceptions, a direct or indirect subsidiary of a financial holding company is prohibited from owning the shares of any other direct or indirect subsidiaries (other than those directly controlled by that direct or indirect subsidiary) under the common control of the financial holding company. Subject to certain exceptions, a direct or indirect subsidiary of a financial holding company is also prohibited from owning the shares of the financial holding company controlling that direct or indirect subsidiary. 82 Table of Contents The transfer of certain assets classified as precautionary or below between a financial holding company and its direct or indirect subsidiary or between the direct and indirect subsidiaries of a financial holding company is prohibited except for: (1) transfers to a special purpose company, or entrustment with a trust company, for an asset-backed securitization transaction under the Asset-Backed Securitization Act; (2) transfers or in-kind contributions to a corporate restructuring vehicle under the Corporate Restructuring Investment Companies Act; and (3) transfers to a corporate restructuring company under the Industrial Development Act. Disclosure of Management Performance For the purpose of protecting the depositors and investors in the direct or indirect subsidiaries of financial holding companies, the Financial Services Commission requires financial holding companies to disclose certain material matters including: (1) financial condition and profit and loss of the financial holding company and its direct and indirect subsidiaries; (2) fund-raising by the financial holding company and its direct and indirect subsidiaries and the appropriation of such funds; (3) any sanctions levied on the financial holding company and its direct and indirect subsidiaries under the Financial Holding Company Act or any corrective measures or sanctions under the Law on Improvement of Structure of Financial Industry; and (4) occurrence of any non-performing assets or financial incident that may have a material adverse effect, or any other event as prescribed in the applicable regulations. Restrictions on Shareholdings in Other Companies Generally, a financial holding company may not own (i) more than 5% of the total issued and outstanding shares of another finance-related company, (ii) any shares of its affiliates, other than its direct or indirect subsidiaries or (iii) any shares of a non-finance-related company. Restrictions on Shareholdings by Direct and Indirect Subsidiaries Generally, a direct subsidiary of a financial holding company may not control any other company other than, as an indirect subsidiary of the financial holding company: • financial institutions established in foreign jurisdictions that are relevant to the business of the direct subsidiary; • certain financial institutions that are relevant to the business of the direct subsidiary, which are engaged in any business that the direct subsidiary may conduct without any licenses or permits; • certain financial institutions whose business is related to the business of the direct subsidiary as described by the Enforcement Decree of the Financial Holding Company Act (for example, a bank subsidiary may control only credit information companies, credit card companies and financial investment companies with a dealing, brokerage, collective investment, investment advice, discretionary investment management and/or trust license); • certain financial institutions whose business is related to the financial business as prescribed by the Ordinance of the Prime Minister; and • certain companies which are not financial institutions but whose business is related to the financial business of the financial holding company as prescribed by the Enforcement Decree of the Financial Holding Company Act (for example, a finance-related research company or a finance-related information technology company). 83 Table of Contents Acquisition of such indirect subsidiaries by direct subsidiaries of a financial holding company requires prior permission from the Financial Services Commission or the submission of a report to the Financial Services Commission, depending on the types of the indirect subsidiaries and the amount of total assets of the indirect subsidiaries. Subject to certain exceptions, an indirect subsidiary of a financial holding company may not control any other company. If an indirect subsidiary of a financial holding company had control over another company at the time it became such an indirect subsidiary, the indirect subsidiary is required to dispose of its interest in the other company within two years from such time. Restrictions on Transactions between a Bank Holding Company and its Major Investor A bank holding company and its direct and indirect subsidiaries may not acquire (including through their respective trust accounts) shares issued by the bank holding company’s major investor in excess of 1% of the net aggregate equity capital (as defined above). In addition, if those entities intend to acquire shares issued by that major investor in any single transaction equal to or exceeding the lesser of (x) the amount equivalent to 0.1% of the net aggregate equity capital and (y) ￦5 billion, that entity must obtain prior unanimous board resolutions and then, immediately after the acquisition, file a report to the Financial Services Commission and publicly disclose the filing of the report. Restrictions on Ownership of a Financial Holding Company Under the Financial Holding Company Act, a financial institution generally may not control a financial holding company. In addition, any single shareholder and persons who have a special relationship with that shareholder may acquire beneficial ownership of up to 10% of the total issued and outstanding shares with voting rights of a bank holding company that controls nationwide banks or 15% of the total issued and outstanding shares with voting rights of a bank holding company that controls only regional banks, subject to certain exceptions. Among others, the Korean government and the Korea Deposit Insurance Corporation are not subject to this limit. “Non-financial business group companies” (as defined below), however, may not acquire the beneficial ownership of shares of a bank holding company controlling nationwide banks in excess of 4% of that bank holding company’s outstanding voting shares unless they obtain the approval of the Financial Services Commission and agree not to exercise voting rights in respect of shares in excess of the 4% limit, in which case they may acquire beneficial ownership of up to 10%. Any other person (whether a Korean national or a foreign investor) may acquire no more than 10% of total voting shares issued and outstanding of a bank holding company controlling nationwide banks unless they obtain approval from the Financial Services Commission in each instance where the total holding will exceed 10% (or 15% in the case of a bank holding company controlling only regional banks), 25% or 33% of the total voting shares issued and outstanding of that bank holding company controlling nationwide banks. Furthermore, in the case where a person (including Korean and foreign investors, but excluding certain persons prescribed under the Enforcement Decree of the Financial Holding Company Act) (i) acquires in excess of 4% of the total issued and outstanding voting shares of any bank holding company (other than a bank holding company controlling only regional banks), (ii) becomes the largest shareholder of such bank holding company in which such person has acquired in excess of 4% of the total issued and outstanding voting shares, (iii) changes its shareholding in such bank holding company, in which it has acquired in excess of 4% of the total issued and outstanding voting shares, by 1% or more of the total issued and outstanding voting shares of such bank holding company or (iv) is a private equity fund or an investment purpose company holding in excess of 4% of the total outstanding voting shares of a bank holding company and changes its members or shareholders, such person must file a report on such change with the Financial Services Commission (x) in case of (i) and (iii), by the last day of the month immediately following the month in which such change occurred, or (y) in case of (ii) and (iv), within ten days after the end of the month in which such change occurred. 84 Table of Contents “Non-financial business group companies” as defined under the Financial Holding Company Act include: (1) any same shareholder group where the aggregate net assets of all non-financial business companies belonging to that group equals or exceeds 25% of the aggregate net assets of all members of that group; (2) any same shareholder group where the aggregate assets of all non-financial business companies belonging to that group equals or exceeds ￦2 trillion; (3) any mutual fund where a same shareholder group identified in (1) or (2) above beneficially owns and/or exercises the voting rights of more than 4% of the total issued and outstanding voting shares of that mutual fund; (4) any private equity fund (a) where a person falling under any of items (1) through (3) above is a limited partner holding not less than 10% of the total amount of contributions to the private equity fund, or (b) where a person falling under any of items (1) through (3) above is a general partner, or (c) where the total equity of the private equity fund acquired by each affiliate belonging to several enterprise groups subject to the limitation on mutual investment is 30% or more of the total amount of contributions to the private equity fund; or (5) the investment purpose company concerned, where a private equity fund falling under item (4) above acquires or holds stocks in excess of 4% of the stock or equity of such company or exercises de facto control over significant managerial matters of such company through appointment or dismissal of executives or in any other manner. Sharing of Customer Information among Financial Holding Company and its Subsidiaries Under the Act on Use and Protection of Credit Information, any individual customer’s credit information may be disclosed only after obtaining consent in writing or otherwise to use that information. In addition, under the Act on Real Name Financial Transactions and Confidentiality, an individual working at a financial institution may not provide or reveal information or data concerning the contents of financial transactions to other persons unless such individual receives a request or consent in writing from the holder of a title deed, except under certain exceptions stipulated in the Act. Under the Financial Holding Company Act, a financial holding company and its direct and indirect subsidiaries, however, may share certain credit information of individual customers among themselves for internal management purposes outlined in the Enforcement Decree of the Financial Holding Company Act (such as credit risk management, internal control and customer analysis), without the customers’ written consent, subject to the methods and procedures for provision of such information set forth therein. A subsidiary financial investment company with a dealing and/or brokerage license of a financial holding company may provide that financial holding company and its other direct and indirect subsidiaries information relating to the aggregate amount of cash or securities that a customer of the financial investment company with a dealing and/or brokerage license has deposited, for internal management purposes outlined in the Enforcement Decree of the Financial Holding Company Act, subject to the methods and procedures for provision of such information set forth therein. Certain amendments to the Financial Holding Company Act, which became effective on November 29, 2014, limit the scope of credit information that may be shared without the customers’ prior consent and require certain procedures for provision of customer information as prescribed by the Financial Services Commission. Beginning on November 29, 2014, notice must be given to customers at least once a year regarding (i) the provider of customer information, (ii) the recipient of customer information, (iii) the purpose of providing the information and (iv) the categories of the information provided. Principal Regulations Applicable to Banks The banking system in Korea is governed by the Bank Act and the Bank of Korea Act of 1950, as amended (the “Bank of Korea Act”). In addition, Korean banks are subject to the regulations and supervision of the Bank of Korea, the Monetary Policy Board of the Bank of Korea, the Financial Services Commission and its executive body, the Financial Supervisory Service. 85 Table of Contents The Bank of Korea, established in June 1950 under the Bank of Korea Act, performs the customary functions of a central bank. It seeks to contribute to the sound development of the national economy by price stabilization through establishing and implementing efficient monetary and credit policies with a focus on financial stability. The Bank of Korea acts under instructions of the Monetary Policy Board, the supreme policy-making body of the Bank of Korea. Under the Bank of Korea Act, the Monetary Policy Board’s primary responsibilities are to formulate monetary and credit policies and to determine the operations, management and administration of the Bank of Korea. The Financial Services Commission, established in April 1998, regulates commercial banks pursuant to the Bank Act, including establishing guidelines on capital adequacy of commercial banks, and promulgates regulations relating to supervision of banks. Furthermore, the Financial Services Commission regulates market entry into the banking business. The Financial Supervisory Service, established in January 1999, is subject to the instructions and directives of the Financial Services Commission and carries out supervision and examination of commercial banks. In particular, the Financial Supervisory Service sets requirements both for the prudent control of liquidity and for capital adequacy and establishes reporting requirements pursuant to the authority delegated to it under the Financial Services Commission regulations, pursuant to which banks are required to submit annual reports on financial performance and shareholdings, regular reports on management strategy and non-performing loans, including write-offs, and management of problem companies and plans for the settlement of bad loans. Under the Bank Act, approval to commence a commercial banking business or a long-term financing business must be obtained from the Financial Services Commission. Commercial banking business is defined as the lending of funds acquired predominantly from the acceptance of demand deposits for a period not exceeding one year or subject to the limitation established by the Financial Services Commission, for a period between one year and three years. Long-term financing business is defined as the lending, for periods in excess of one year, of funds acquired predominantly from paid-in capital, reserves or other retained earnings, the acceptance of time deposits with maturities of at least one year, or the issuance of debentures or other bonds. A bank wishing to enter into any business other than commercial banking and long-term financing businesses must file a report to the Financial Services Commission. For businesses that are subject to a license or approval requirement under applicable laws, such as approval to commence a trust business under the Financial Investment Services and Capital Markets Act, such report must be filed concurrently with a relevant license or approval application to the Financial Services Commission. In addition, approval to merge with any other banking institution, to liquidate, spin off or close a banking business or to transfer all or a part of a business must be obtained from the Financial Services Commission. If the Financial Services Commission deems a bank’s financial condition to be unsound or if a bank fails to meet the applicable capital adequacy ratio set forth under Korean law, the Financial Services Commission may order: • admonitions or warnings with respect to the bank or its officers; • capital increases or reductions; • assignments of contractual rights and obligations relating to financial transactions; • a suspension of performance by its officers of their duties and the appointment of receivers; • disposals of property holdings or closures of subsidiaries or branch offices or downsizing; • stock cancelations or consolidations; • mergers with other financial institutions; 86 Table of Contents • acquisition of such bank by a third party; and • suspensions of a part or all of its business operations for not more than six months. Capital Adequacy The Bank Act requires nationwide banks, such as us, to maintain a minimum paid-in capital of ￦100 billion and regional banks to maintain a minimum paid-in capital of ￦25 billion. All banks, including foreign bank branches in Korea, are also required to maintain a prescribed solvency position. A bank must also set aside in its legal reserve an amount equal to at least 10% of the net income after tax each time it pays dividends on net profits earned until its legal reserve reaches at least the aggregate amount of its paid-in capital. Under the Regulation on the Supervision of the Banking Business, the capital of a bank is divided into two categories, Tier I and Tier II capital. Tier I capital (core capital) consists of (i) common equity Tier I capital, including paid-in capital, capital surplus and retained earnings related to common equity and accumulated other comprehensive gains and losses, and (ii) additional Tier I capital, including paid-in capital and capital surplus from the issuance of additional Tier I capital, hybrid capital instruments and other capital securities which meet the standards prescribed by the governor of the Financial Supervisory Service under relevant regulations. Tier II capital (supplementary capital) consists of, among other things, capital and capital surplus from the issuance of Tier II capital, allowances for loan losses on loans classified as “normal” or “precautionary,” subordinated debt and other capital securities which meet the standards prescribed by the governor of the Financial Supervisory Service under Article 26(2) of the Regulation on the Supervision of the Banking Business. All banks must meet minimum ratios of Tier I and Tier II capital (less any capital deductions) to risk-weighted assets, determined in accordance with Financial Services Commission requirements that have been formulated based on BIS standards. These requirements were adopted and became effective in 1996, and were amended effective January 1, 2008 upon the implementation by the Financial Supervisory Service of Basel II. Under such requirements, all domestic banks and foreign bank branches are required to meet a minimum ratio of Tier I and Tier II capital (less any capital deductions) to risk-weighted assets. Commencing in July 2013, the Financial Services Commission promulgated a series of amended regulations implementing Basel III, pursuant to which Korean banks and bank holding companies were required to maintain a minimum ratio of common equity Tier I capital to risk-weighted assets of 3.5% and Tier I capital to risk-weighted assets of 4.5% from December 1, 2013, which minimum ratios were increased to 4.0% and 5.5%, respectively, from January 1, 2014 and increased further to 4.5% and 6.0%, respectively, from January 1, 2015. The amended regulations also require an additional capital conservation buffer of 2.5% from January 2019, as well as a potential counter-cyclical capital buffer of up to 2.5%, which is determined on a quarterly basis by the Financial Services Commission and is set at 1.0% as of the date of this annual report. Furthermore, we and Kookmin Bank were each designated as a domestic systemically important bank holding company and a domestic systemically important bank, respectively, for 2025 by the Financial Services Commission and were subject to an additional capital requirement of 1.0% in 2025. In July 2025, we and Kookmin Bank were each again designated as a domestic systemically important bank holding company and a domestic systemically important bank, respectively, for 2026, which again subjects us to an additional capital requirement of 1.0% in 2026. In addition, the Financial Services Commission has indicated that it may introduce a stress buffer capital requirement of up to 2.5%, which would require banks and bank holding companies to hold additional capital based on stress test results. The introduction of this requirement, initially planned for 2024, has been delayed multiple times and is currently not expected to be introduced until at least June 2026. All such requirements are in addition to the pre-existing requirement for minimum ratios of Tier I and Tier II capital (less any capital deductions) to risk-weighted assets set forth above. Under the Detailed Regulation on the Supervision of the Banking Business, the following risk-weight ratios must be applied by Korean banks in respect of home mortgage loans: (1) for those banks which adopted a standardized approach for calculating credit risk capital requirements, a risk-weight ratio between 20% and 70% depending on the loan-to-value ratio, to the extent that the 87 Table of Contents home mortgage loan is not financed through cash flows from the mortgaged property and provided that a higher risk-weight ratio may apply to home mortgage loans subject to certain exceptions; and (2) for those banks which adopted an internal ratings-based approach for calculating credit risk capital requirements, a risk-weight ratio calculated with reference to the probability of default, loss given default and exposure at default, each as defined under the Detailed Regulation on the Supervision of the Banking Business; provided, however, that such risk-weight ratio must be at least 20%. Liquidity All banks are required to ensure adequate liquidity by matching the maturities of their assets and liabilities in accordance with the Regulation on the Supervision of the Banking Business. Banks may not invest an amount exceeding 100% of their Tier I and Tier II capital (less any capital deductions) in equity securities and certain other securities with a redemption period of over three years. This stipulation does not apply to Korean government bonds, Monetary Stabilization Bonds issued by the Bank of Korea or debentures and stocks referred to in items 1 and 2, respectively, of paragraph (6) of Article 11 of the Act on the Structural Improvement of the Financial Industry. The Financial Services Commission uses the liquidity coverage ratio (described below) as the principal liquidity risk management measure, and currently requires each Korean bank to: • maintain a liquidity coverage ratio (defined as the ratio of highly liquid assets to total net cash outflows over a 30-day period) of not less than 100%; • maintain a foreign currency liquidity coverage ratio of not less than 80%; and • submit monthly reports with respect to the maintenance of these ratios. The Monetary Policy Board of the Bank of Korea is empowered to fix and alter minimum reserve requirements that banks must maintain against their deposit liabilities. The current minimum reserve ratios are: • 7% of average balances for Won currency demand deposits outstanding; • 0% of average balances for Won currency employee asset establishment savings deposits, employee long-term savings deposits, employee house purchase savings deposits, long-term house purchase savings deposits, household long-term savings deposits and employee preferential savings deposits outstanding (with respect to employee-related deposits and household long-term savings deposits, only if such deposits were made prior to February 28, 2013); and • 2% of average balances for Won currency time deposits, installment savings deposits, mutual installments, housing installments and certificates of deposit outstanding. For foreign currency deposit liabilities, a 2% minimum reserve ratio is applied to time deposits with a maturity of one month or longer, certificates of deposit with a maturity of 30 days or longer and savings deposits with a maturity of six months or longer and a 7% minimum reserve ratio is applied to other deposits. A 1% minimum reserve ratio applies to deposits in offshore accounts, immigrant accounts and resident accounts opened by financial institutions (excluding bank holding companies) and the Export-Import Bank of Korea, as well as foreign currency certificates of deposit held by account holders of such offshore accounts, immigrant accounts and resident accounts opened by such financial institutions. Furthermore, under the Regulation on the Supervision of the Banking Business, Kookmin Bank is required to maintain a minimum “mid- to long-term foreign exchange funding ratio” of 100%. “Mid-to long term foreign exchange funding ratio” refers to the ratio of (1) the total outstanding amount of foreign exchange borrowing with a maturity of more than one year to (2) the total outstanding amount of foreign exchange lending with a maturity of one year or more. 88 Table of Contents Net Stable Funding Ratio and Leverage Ratio Requirements The Financial Services Commission has implemented the Regulation on Supervision of the Banking Business that impose certain liquidity- and leverage-related ratio requirements on banks in Korea, in accordance with Basel III. Pursuant to such Regulation, each Korean bank is required to: • maintain a net stable funding ratio (defined as the ratio of the available amount of stable funding to the required amount of stable funding) of not less than 100%, where (i) the available amount of stable funding generally refers to the portion of liabilities and capital expected to be reliable over a one-year time horizon and (ii) the required amount of stable funding generally refers to the amount of stable funding that is required to be maintained based on the liquidity characteristics, residual maturities and off-balance sheet exposures of the bank’s assets, each as calculated in accordance with the Detailed Regulation on the Supervision of the Banking Business; • maintain a leverage ratio (defined as the ratio of core capital to total exposures) of not less than 3%, where (i) the core capital includes paid-in capital, capital surplus, retained earnings and hybrid Tier I capital instruments and (ii) total exposures include on-balance sheet exposures, derivative exposures, securities financing transaction exposures and off-balance sheet exposures, each as calculated in accordance with the Detailed Regulation on the Supervision of the Banking Business; and • submit periodic reports with respect to the maintenance of these ratios (monthly reports for the net stable funding ratio and quarterly reports for the leverage ratio). Financial Exposure to Any Individual Customer or Major Shareholder Under the Bank Act, subject to certain exceptions, the sum of large exposures by a bank—in other words, the total sum of its credits to single individuals, juridical persons or business groups that exceed 10% of the sum of Tier I and Tier II capital (less any capital deductions)—generally must not exceed five times the sum of Tier I and Tier II capital (less any capital deductions). In addition, subject to certain exceptions, banks generally may not extend credit (including loans, guarantees, purchases of securities (extended for financial support) and any other transactions that directly or indirectly create credit risk) in excess of 20% of the sum of Tier I and Tier II capital (less any capital deductions) to a single individual or juridical person, or grant credit in excess of 25% of the sum of Tier I and Tier II capital (less any capital deductions) to a single group of companies as defined in the Monopoly Regulations and Fair Trade Act. The Bank Act also provides for certain restrictions on extending credits to a major shareholder. A “major shareholder” is defined as: • a shareholder holding (together with persons who have a special relationship with that shareholder) in excess of 10% (or 15% in the case of regional banks) in the aggregate of the bank’s total issued and outstanding voting shares; or • a shareholder holding (together with persons who have a special relationship with such shareholder) in excess of 4% in the aggregate of the bank’s (excluding regional banks) total issued and outstanding voting shares of a bank (excluding shares subject to the shareholding restrictions on “non-financial business group companies” as described below), where such shareholder is the largest shareholder or has actual control over the major business affairs of the bank through, for example, appointment and dismissal of the officers as prescribed by the Enforcement Decree of the Bank Act. Non-financial business group companies primarily consist of: (i) any single shareholding group whose non-financial company assets comprise no less than 25% of its aggregate net assets; (ii) any single shareholding group whose non-financial company assets comprise no less than ￦2 trillion in aggregate; or (iii) any investment company under the Financial Investment Services and Capital Markets Act of which any single shareholding group identified in (i) or (ii) above, owns more than 4% of the total issued and outstanding shares. 89 Table of Contents Under these restrictions, banks may not extend credits to a major shareholder (together with persons who have a special relationship with that shareholder) in an amount greater than the lesser of (x) 25% of the sum of the bank’s Tier I and Tier II capital (less any capital deductions) and (y) the relevant major shareholder’s shareholding ratio multiplied by the sum of the bank’s Tier I and Tier II capital (less any capital deductions). In addition, the total sum of credits granted to all major shareholders must not exceed 25% of the bank’s Tier I and Tier II capital (less any capital deductions). Interest Rates Korean banks generally depend on deposits as their primary funding source. Under the Act on Registration of Credit Business, Etc. and Protection of Finance Users and the regulations thereunder, interest rates on loans made by registered banks in Korea may not exceed 20% per annum, commencing July 2021. Historically, interest rates on deposits and lending were regulated by the Monetary Policy Board. There are no controls on deposit interest rates in Korea, except for the prohibition on interest payments on current account deposits. Lending to Small- and Medium-sized Enterprises In order to obtain funding from the Bank of Korea at concessionary rates for their small- and medium-sized enterprise loans, banks are required to allocate a certain minimum percentage of any quarterly increase in their Won currency lending to small- and medium-sized enterprises. Currently, this minimum percentage is 50% for both nationwide banks and regional banks. If a bank does not comply with this requirement, the Bank of Korea may: • require the bank to prepay all or a portion of funds provided to that bank in support of loans to small- and medium-sized enterprises; or • lower the bank’s credit limit. Disclosure of Management Performance For the purpose of protecting depositors and investors in commercial banks, the Financial Services Commission requires commercial banks to publicly disclose certain material matters, including: • the financial condition and profit and loss of the bank and its subsidiaries; • fundraising by the bank and the appropriation of such funds; • any sanctions levied on the bank under the Bank Act or any corrective measures or sanctions under the Act on the Structural Improvement of the Financial Industry; and • the occurrence of any of the following events or any other event as prescribed by the applicable regulations, that have damaged or are likely to damage the soundness of the bank’s management, except as may otherwise have been disclosed by a bank or its financial holding company listed on the KRX KOSPI Market in accordance with the Financial Investment Services and Capital Markets Act: (i) loans bearing no profit made to a single business group in an amount exceeding 10% of the sum of the bank’s Tier I and Tier II capital (less any capital deductions) as of the end of the previous month (where the loan exposure to that borrower is calculated pursuant to the criteria under the Detailed Regulation on the Supervision of the Banking Business), unless the loan exposure to that group is not more than ￦4 billion; and (ii) any loss due to court judgments or similar decisions in civil proceedings in an amount exceeding 1% of the sum of the bank’s Tier I and Tier II capital (less any capital deductions) as of the end of the previous month, unless the loss is not more than ￦1 billion. 90 Table of Contents Restrictions on Lending Pursuant to the Bank Act and its sub-regulations, a commercial bank may not provide: • loans secured by a pledge of the bank’s own shares, whether direct or indirect; • loans to enable a natural or juridical person to buy the shares issued by the bank, whether direct or indirect; • loans to any of the bank’s officers or employees, other than de minimis loans of up to (i) ￦20 million in the case of a general loan, (ii) ￦50 million in the case of a general loan plus a housing loan or (iii) ￦60 million in the aggregate for general loans, housing loans and loans to pay damages arising from wrongful acts of employees in financial transactions; • credit (including loans) secured by a pledge of the equity securities of its subsidiary corporation or to enable a natural or juridical person to buy shares of the bank’s subsidiary corporation; or • loans to any officers or employees of the bank’s subsidiary corporation, other than general loans of up to ￦20 million or general and housing loans of up to ￦50 million in the aggregate. Regulations Relating to Retail Household Loans The Financial Services Commission has implemented a number of changes in recent years, most recently in October 2025 (which supplemented measures adopted in June and September 2025), to the regulations relating to retail household lending by banks. Under the currently applicable regulations: • as to any new loans secured by housing (including apartments) located in the Seoul metropolitan area and other regulated zones, a differentiated loan limit based on the market price of the property is applied: (i) for homes with a market price of up to ￦1.5 billion, the mortgage loan limit shall be ￦600 million; (ii) for homes with a market price exceeding ￦1.5 billion and up to ￦2.5 billion, the limit shall be ￦400 million; and (iii) for homes with a market price exceeding ￦2.5 billion, the limit shall be ￦200 million; • as to any new loans secured by housing (including apartments) located nationwide, the loan to value ratio (the aggregate principal amount of loans secured by such collateral over the appraised value of the collateral) should not exceed 70%; • as to any new loans secured by housing (including apartments) located in “excessive investment,” “high speculation” or “adjustment target” areas, in each case as designated by the government, the loan to value ratio should not exceed 40%, except that such maximum loan-to-value ratio shall be 70% for low-income households that (i) have a combined annual income of no more than ￦90 million, (ii) do not currently own any housing and (iii) are using the loan to purchase low-price housing valued at no more than ￦900 million (or ￦800 million in the case of adjustment target areas as designated by the Minister of Land, Infrastructure and Transport); • as to any new loans secured by housing (including apartments) located nationwide to be extended to a household that already owns one or more houses, the maximum loan-to-value ratio must be adjusted to 10% lower than the applicable loan-to-value ratio described above; • as to any new loans secured by housing (including apartments) located in excessive investment, high speculation or adjustment target areas, in each case as designated by the government, a household that already owns one or more houses in the Seoul metropolitan area or other regulated zones is prohibited from obtaining any new mortgage loans for the purpose of purchasing additional housing, except that a household that owns only one house may obtain new mortgage loans for the purpose of purchasing additional housing under the condition that the existing house is disposed of within six months of such additional purchase, in which case the same maximum loan-to-value ratio that applies to a household that does not own any houses shall apply); 91 Table of Contents • as to any new loans secured by housing (including apartments) located in excessive investment or high speculation areas, in each case as designated by the government, the borrower’s debt-to-income ratio (calculated as (1) the aggregate annual total payment amount of (x) the principal of and interest on loans secured by such housing and existing mortgage and home equity loans and (y) the interest on other borrowings of the borrower over (2) the borrower’s annual income) should not exceed 40%, except that such maximum debt-to-income ratio is increased to 60% for (i) low-income households that (x) have an annual income of less than ￦90 million, (y) do not currently own any housing and (z) are using the loan to purchase low-price housing valued at ￦900 million or less (￦800 million or less in the case of adjustment target areas) or (ii) first-time homebuyers; • as to any new loans secured by housing (including apartments) located in adjustment target areas designated by the government, the borrower’s debt-to-income ratio should not exceed 50%, except that such maximum debt-to-income ratio is increased to 60% for low-income households that (a)(i) have an annual income of less than ￦90 million, (ii) do not currently own any housing and (iii) are using the loan to purchase low-price housing valued at ￦800 million or less or (b) are first-time homebuyers; and • as to any new loans extended to a household that has already obtained loans in an aggregate principal amount of more than ￦100 million (including the new loan being applied for), the borrower’s debt-service-ratio (calculated as (1) the aggregate annual total payment amount of the principal of and interest on financial liabilities, including (i) the loans secured by such high-priced housing, subject to certain adjustments relating to stress buffers and (ii) the interest portion of any jeonse loans for single-home owners, divided by (2) the borrower’s annual income) should not exceed 40% unless otherwise specified by the applicable regulations. Restrictions on Investments in Property A bank may not invest in the following securities in excess of 100% of the sum of the bank’s Tier I and Tier II capital (less any capital deductions): • debt securities (within the meaning of paragraph (3) of Article 4 of the Financial Investment Services and Capital Markets Act) the maturity of which exceeds three years, but excluding government bonds, monetary stabilization bonds issued by the Bank of Korea and bonds within the meaning of item 2, paragraph (6) of Article 11 of the Act on the Structural Improvement of the Financial Industry; • equity securities, but excluding securities within the meaning of item 1, paragraph (6) of Article 11 of the Act on the Structural Improvement of the Financial Industry; • derivatives-linked securities (within the meaning of paragraph (7) of Article 4 of the Financial Investment Services and Capital Markets Act) the maturity of which exceeds three years; and • beneficiary certificates, investment contracts and depositary receipts (within the meaning of paragraph (2) of Article 4 of the Financial Investment Services and Capital Markets Act) the maturity of which exceeds three years. A bank may possess real estate property only to the extent necessary to conduct its business. The aggregate value of such property may not exceed 60% of the sum of the bank’s Tier I and Tier II capital (less any capital deductions). Any property that a bank acquires by exercising its rights as a secured party, or which a bank is prohibited from acquiring under the Bank Act, must be disposed of within three years, unless otherwise specified by the regulations thereunder. 92 Table of Contents Restrictions on Shareholdings in Other Companies Under the Bank Act, a bank may not own more than 15% of the shares outstanding with voting rights of another corporation, except where, among other reasons: • that corporation engages in a category of financial businesses set forth by the Financial Services Commission; or • the acquisition of such shares by the bank is necessary for the corporate restructuring of such corporation and is approved by the Financial Services Commission. In the above exceptional cases, the total investment in corporations in which the bank owns more than 15% of the outstanding shares with voting rights may not exceed (i) 20% of the sum of Tier I and Tier II capital (less any capital deductions) or (ii) 30% of the sum of Tier I and Tier II capital (less any capital deductions) where the acquisition satisfies the requirements determined by the Financial Services Commission. The Bank Act provides that a bank using its bank accounts and its trust accounts is not permitted to acquire the equity securities issued by the major shareholder of such bank in excess of an amount equal to 1% of the sum of Tier I and Tier II capital (less any capital deductions). Restrictions on Bank Ownership Under the Bank Act, a single shareholder and persons who have a special relationship with that shareholder generally may acquire beneficial ownership of no more than 10% of a nationwide bank’s total issued and outstanding shares with voting rights and no more than 15% of a regional bank’s total issued and outstanding shares with voting rights. The Korean government, the Korea Deposit Insurance Corporation and bank holding companies qualifying under the Financial Holding Company Act are not subject to this limit. Pursuant to the Bank Act, non-financial business group companies may not acquire beneficial ownership of shares of a nationwide bank in excess of 4% (or 15% in the case of a regional bank) of that bank’s outstanding voting shares, unless they satisfy certain requirements set forth by the Enforcement Decree of the Bank Act, obtain the approval of the Financial Services Commission and agree not to exercise voting rights in respect of shares in excess of the 4% limit (or the 15% limit in the case of a regional bank), in which case they may acquire beneficial ownership of up to 10% of a nationwide bank’s outstanding voting shares. The Bank Act grants an exception for non-financial business group companies which, at the time of the enactment of the amended provisions, held more than 4% of the shares of a bank. In addition, if a foreign investor, as defined in the Foreign Investment Promotion Act, owns in excess of 4% of a nationwide bank’s outstanding voting shares, non-financial business group companies may acquire beneficial ownership of up to 10% (or 15% in the case of a regional bank) of that bank’s outstanding voting shares, and in excess of 10% (or 15% in the case of a regional bank), 25% or 33% of that bank’s outstanding voting shares with the approval of the Financial Services Commission in each instance, up to the number of shares owned by the foreign investor. Any other person (whether a Korean national or a foreign investor), with the exception of non-financial business group companies described above, may acquire no more than 10% of a nationwide bank’s total voting shares issued and outstanding, unless they obtain approval from the Financial Services Commission in each instance where the total holding will exceed 10% (or 15% in the case of regional banks), 25% or 33% of the bank’s total voting shares issued and outstanding provided that, in addition to the foregoing threshold shareholding ratios, the Financial Services Commission may, at its discretion, designate a separate and additional threshold shareholding ratio. Deposit Insurance System The Depositor Protection Act provides insurance for certain deposits of banks in Korea through a deposit insurance system. Under the Depositor Protection Act, all banks governed by the Bank Act are required to pay an 93 Table of Contents insurance premium to the Korea Deposit Insurance Corporation on a quarterly basis and the rate is determined under the Enforcement Decree to the Depositor Protection Act. If the Korea Deposit Insurance Corporation makes a payment on an insured amount, it will acquire the depositors’ claims with respect to that payment amount. The Korea Deposit Insurance Corporation insures a maximum of ￦100 million per individual for deposits and interest in a single financial institution, regardless of when the deposits were made and the size of the deposits, which limit increased from ￦50 million through an amendment to the Depositor Protection Act of Korea that became effective in September 2025. Restrictions on Foreign Exchange Position Under the Foreign Exchange Transaction Act of Korea, each of a bank’s net overpurchased and oversold positions may not exceed 50% of its shareholder’s equity as of the end of the prior month. Laws and Regulations Governing Other Business Activities A bank must register with the Ministry of Economy and Finance to enter the foreign exchange business, which is governed by the Foreign Exchange Transaction Act of Korea. A bank must obtain the permission of the Financial Services Commission to enter the securities business, which is governed by regulations under the Financial Investment Services and Capital Markets Act. Under these laws, a bank may engage in the foreign exchange business, securities repurchase business, governmental/public bond underwriting business and governmental bond dealing business, among others. Trust Business A bank must obtain approval from the Financial Services Commission to engage in trust businesses. The Trust Act and the Financial Investment Services and Capital Markets Act govern the trust activities of banks, and they are subject to various legal and accounting procedures and requirements, including the following: • under the Trust Act, assets accepted in trust by a bank in Korea must be segregated from other assets in the accounts of that bank; and • depositors and other general creditors cannot obtain or assert claims against the assets comprising the trust accounts in the event the bank is liquidated or wound-up. The bank must make a special reserve of 25% or more of fees from each unspecified money trust account for which a bank guarantees the principal amount and a fixed rate of interest until the total reserve for that account equals 5% of the trust amount. Under the Financial Investment Services and Capital Markets Act, a bank with a trust business license (such as Kookmin Bank) is permitted to offer both specified money trust account products and unspecified money trust account products. However, pursuant to guidelines from regulatory authorities that discourage the sale of unspecified money trust account products, sales of such products have generally been suspended. Credit Card Business General In order to enter the credit card business, a company must obtain a license from the Financial Services Commission. Credit card businesses are governed by the Specialized Credit Financial Business Act, which sets forth specific requirements with respect to the credit card business as well as generally prohibiting unsound business practices relating to the credit card business which may infringe on the rights of credit card holders or negatively affect the soundness of the credit card industry. Credit card companies, including our wholly-owned subsidiary, KB Kookmin Card Co., Ltd., are regulated by the Financial Services Commission and the Financial Supervisory Service. 94 Table of Contents Disclosure and Reports Under the Specialized Credit Financial Business Act and the regulations thereunder, a credit card company is required to disclose on a periodic and on-going basis certain material matters and events. In addition, a credit card company must submit periodic reports with respect to its results of operations to the Governor of the Financial Supervisory Service, in accordance with the guidelines of the Financial Supervisory Service. Restrictions on Funding Under the Specialized Credit Financial Business Act and the regulations thereunder, a credit card company must ensure that its total assets do not exceed an amount equal to eight times its equity capital and that the ratio of its adjusted equity capital to its adjusted total assets is not less than 8.0%. However, if a credit card company is unable to comply with such limit upon the occurrence of unavoidable events, such as drastic changes in the domestic and global financial markets, such limit may be adjusted through a resolution of the Financial Services Commission. Risk of Loss Due to Lost, Stolen, Forged or Altered Credit Cards Under the Specialized Credit Financial Business Act, a credit card company is liable for any loss arising from the unauthorized use of credit cards or debit cards after it has received notice from the holder of the loss or theft of the card. A credit card company is also responsible for any losses resulting from the use of forged or altered credit cards, debit cards and pre-paid cards. A credit card company may, however, transfer all or part of this latter risk of loss to holders of credit card in the event of willful misconduct or gross negligence by holders of credit card if the terms and conditions of the agreement entered between the credit card company and members of such cards specifically provide for that transfer. For these purposes, disclosure of a customer’s password that is made intentionally or through gross negligence, or the transfer of or giving as collateral of the credit card or debit card, is considered willful misconduct or gross negligence. However, a disclosure of a cardholder’s password that is made under irresistible force or threat to cardholder or his/her relatives’ life or health will not be deemed as willful misconduct or negligence of the cardholder. Each credit card company must institute appropriate measures to fulfill these obligations, such as establishing provisions, purchasing insurance or joining a cooperative association. Pursuant to the Enforcement Decree to Specialized Credit Financial Business Act, a credit card company will be liable for any losses arising from loss or theft of a credit card (which was not from the holder’s willful misconduct or negligence) during the period beginning 60 days before the notice by the holder to the credit card company. Pursuant to the Specialized Credit Financial Business Act, the Financial Services Commission may either restrict the limit or take other necessary measures against the credit card company with respect to such matters as the maximum limits on the amount per credit card, details of credit card terms and conditions, management of credit card merchants and collection of claims, including the following: • maximum limits for cash advances on credit cards; • use restrictions on debit cards with respect to per day or per transaction usage; • aggregate issuance limits and maximum limits on the amount per card on pre-paid cards; and • other matters prescribed by the Enforcement Decree to the Specialized Credit Financial Business Act. Lending Ratio in Ancillary Business Pursuant to the Enforcement Decree to the Specialized Credit Financial Business Act, a credit card company must maintain an aggregate quarterly average outstanding lending balance to credit cardholders (including cash 95 Table of Contents advances and credit card loans, but excluding restructured loans) no greater than the sum of (i) its aggregate quarterly average outstanding credit card balance arising from the purchase of goods and services and (ii) the aggregate quarterly debit card transaction volume. Issuance of New Cards and Solicitation of New Cardholders The Enforcement Decree to the Specialized Credit Financial Business Act establishes the conditions under which a credit card company may issue new cards and solicit new members. New credit cards may be issued only to the following persons: • persons who are at least 19 years old when they apply for a credit card; • persons whose capability to pay bills as they come due has been verified using standards established by the credit card company; and • in the case of minors who are 18 years old, persons who submit documents evidencing employment as of the date of the credit card application, such as an employment certificate, or persons for whom the issuance of a credit card is necessitated by governmental policies, such as financial aid. In addition, a credit card company may not solicit credit card members by: • providing economic benefits or promising to provide economic benefits in excess of 100% of the annual credit card fee (in the case of credit cards with annual fees that are less than the average of the annual fees charged by major credit cards in Korea, the annual fee will be deemed to be equal to such average annual fee) in connection with issuing a credit card; • soliciting applicants on roads, public places or along corridors used by the general public; • soliciting applicants through visits, except those visits made upon prior consent and visits to a business area; • soliciting applicants through the Internet without verifying whether the applicant is who he or she purports to be, by means of a digital signature (limited, however, to cases where it can be confirmed that the applicant is the person in question by using identifiable information) under the Digital Signature Act; and • soliciting applicants through pyramid sales methods. Compliance Rules on Collection of Receivable Claims Pursuant to Supervisory Regulation on the Specialized Credit Financial Business, a credit card company may not: • exert violence or threaten violence; • inform a related party (a guarantor of the debtor, blood relative or fiancé(e) of the debtor, a person living in the same household as the debtor or a person working in the same workplace as the debtor) of the debtor’s obligations without just cause; • provide false information relating to the debtor’s obligation to the debtor or his or her related parties; • threaten to sue or sue the debtor for fraud despite lack of affirmative evidence to establish that the debtor has submitted forged or false documentation with respect to his or her ability to make payment; • visit or telephone the debtor during late evening hours (between the hours of 9:00 p.m. and 8:00 a.m.); and • utilize other uncustomary methods to collect the receivables that interfere with the privacy or the peace in the workplace of the debtor or his or her related parties. 96 Table of Contents Principal Regulations Applicable to Insurance Companies General Under the Insurance Business Act, a company seeking to engage in the insurance business in Korea is required to obtain business authorizations and licenses from the Financial Services Commission, and such company is required to comply with the Insurance Business Act and the regulations thereunder. These rules and regulations cover, among other things: (i) the requirements for obtaining business authorizations and licenses to operate an insurance company; (ii) the scope of business an insurance company may undertake; (iii) the operations of an insurance company, including its asset management activities; (iv) the methods of insurance solicitation; (v) the supervision of the insurance business; and (vi) the disciplinary actions for violation of the Insurance Business Act, which may include revocation of a license, imprisonment, suspension of operations, fines, surcharges and penalties. The Financial Services Commission has the authority to oversee matters involving licenses necessary for, and supervision of, the operation of an insurance business. Pursuant to the Regulation on Supervision of Insurance Business and the Regulation on Corporate Governance of Financial Companies, the Financial Services Commission sets forth detailed criteria for obtaining the authorization necessary to engage in the insurance business, as well as various comprehensive standards required to be met by an insurance company. The Financial Services Commission entrusts the Financial Supervisory Service with certain matters pursuant to the Regulation on Supervision of Insurance Business, as specified under the Detailed Enforcement Regulations on Insurance Supervision. Since an insurance company falls within the scope of a financial institution under the Act on the Structural Improvement of the Financial Industry, special provisions thereunder apply to an insurance company in the event (i) it merges with, or converts into, another financial institution, (ii) it becomes bankrupt or insolvent or is dissolved or (iii) members of its business group acquire shares of another company in excess of a certain percentage. In addition, an insurance company that offers and sells investment-type insurance products, such as variable insurance products, and manages assets under special accounts for variable insurance policies is deemed a financial investment company under the Financial Investment Services and Capital Markets Act. Such insurance company is subject to certain provisions under the Financial Investment Services and Capital Markets Act, such as regulations on the control of conflicts of interest as well as the establishment and maintenance of firewalls for asset management of special accounts related to variable insurance policies. In addition, pursuant to the Foreign Exchange Transactions Act, an insurance company is required to obtain prior approval from the Ministry of Economy and Finance, the Bank of Korea, the Financial Supervisory Service or a foreign exchange bank and may be required to file periodic reports if the company engages in any of the following: (a) a transaction involving a foreign currency; (b) a transaction with a non-resident involving either the Won or a foreign currency; (c) a transaction that requires an outgoing overseas payment; (d) a transaction that requires receipt of an overseas payment; and (e) any other transaction prescribed under the Foreign Exchange Transactions Act. Furthermore, an insurance company is required to comply with the Act on the Corporate Governance of Financial Companies. Scope of Business of Insurance Companies Under the Insurance Business Act, an insurance company is prohibited from concurrently operating a life insurance business and a non-life insurance business (including property, marine and cargo and liability insurance), provided that an insurance company may concurrently operate a “type three” insurance business (including casualty, disease and health care insurance) and provide reinsurance to other insurance companies. However, limited cross-selling of life insurance and non-life insurance products by insurance sales agents working for life insurance or non-life insurance companies in Korea is permitted by the Financial Services Commission. Upon approval by the Financial Services Commission, a life insurance company may operate (i) a life insurance business, (ii) a pension insurance (including retirement insurance) business and (iii) type three 97 Table of Contents insurance businesses, while a non-life insurance company may operate (i) various types of non-life insurance businesses (including property, marine and cargo, automobile, guarantee, reinsurance and certain other enumerated non-life insurance as designated under the Enforcement Decree of the Insurance Business Act as well as liability insurance) and (ii) type three insurance businesses. Both life insurance and non-life insurance companies may also operate certain financial businesses and incidental businesses designated under the Enforcement Decree of the Insurance Business Act. Requirements Relating to Insurance Solicitation The Insurance Business Act limits entities that may engage in insurance solicitation to insurance sales agents, insurance agencies (including those of financial institutions), insurance brokers and officers and employees of an insurance company. Any person or entity wishing to act as an insurance sales agent, insurance agency (including those of financial institutions) or insurance broker must register with the Financial Services Commission and report promptly to the Financial Services Commission the occurrence of certain changes prescribed under the Insurance Business Act. Insurance brochures used for insurance solicitation must clearly specify the terms required under the Insurance Business Act in an easy-to-understand manner. Where an insurance company or any person engaging in insurance solicitation persuades an ordinary policyholder to enter into an insurance contract, it must explain to such ordinary policyholder about certain critical matters of the insurance contract prescribed by the Financial Consumer Protection Act, including details of insurance products, insurance premiums (including mutual aid premiums), procedures for payment of insurance proceeds (including mutual aid) and grounds for restricting the payment and coverage scope in a manner the policyholder can easily understand. Where an insurance company or any person engaging in insurance solicitation advertises an insurance product, it must include the details of such insurance product in such advertisement as prescribed under the Financial Consumer Protection Act and must not engage in any act which, among other things, may lead to a misunderstanding that such insurance product would provide a large amount of insurance proceeds by emphasizing selective terms and conditions of such product or introducing cases where a large amount of insurance proceeds were paid. In connection with the execution or solicitation of an insurance contract, any person engaging in insurance solicitation must not engage in any act prohibited under the Insurance Business Act and the Financial Consumer Protection Act, including acts of providing a policyholder with false information regarding an insurance product and acts intended to interrupt or prevent a policyholder (including interested parties prescribed by the Enforcement Decree of the Financial Consumer Protection Act) from notifying an insurance company of an important matter relevant to an insurance policy. Any person engaging in insurance solicitation is prohibited from providing special benefits (including, but not limited to, cash over a certain amount and discounts on insurance premiums) in connection with the execution of an insurance contract unless such special benefits are stipulated in the underlying documents for such insurance product. In addition, an insurance company is prohibited from entrusting any person other than those who are eligible under the Insurance Business Act to engage in insurance solicitation or paying any compensation to any ineligible persons for his or her insurance solicitation. The Insurance Business Act and the Financial Consumer Protection Act also prescribe in detail certain practices that insurance agencies of financial institutions are restricted from engaging in, including, but not limited to: • forcing entry into contracts on financial products against the will of the policyholder using a position of advantage; and • including insurance premiums in loan transactions without the prior consent of the borrower. 98 Table of Contents The Insurance Business Act permits insurance sales agents working for life insurance companies to cross-sell non-life insurance products of one non-life insurance company, and insurance sales agents working for non-life insurance companies are correspondingly permitted to cross-sell the life insurance products of one life insurance company. Capital Adequacy Pursuant to the solvency requirements implemented by the Financial Services Commission, insurance companies in Korea are required to maintain a statutory ratio of available capital to required capital of not less than 100% on a consolidated basis (although a K-ICS ratio of not less than 130% is generally considered standard in the Korean insurance industry). Solvency requirements require insurance companies to hold adequate capital to cover their exposures to life/long-term non-life insurance risk, general non-life insurance risk, market risk, credit risk and operational risk by reflecting such risks in their calculation of required capital. The statutory solvency ratio for insurance companies is computed by dividing available capital by required capital. Available capital of an insurance company is computed as the sum of, among other things, capital stock, reserve for policyholder dividends and bad debt allowance after deducting the amount of assets and/or capital from the financial soundness balance sheet that are recognized by the governor of the Financial Supervisory Service as unable to be used to cover losses incurred by unforeseen risks of an insurance company, such as stock discounts and treasury stocks. Required capital is calculated based on the sum of (a) basic required capital, which is calculated as the sum of (i) the square root of the sum of the squares of (w) life/long-term non-life insurance risk, (x) general non-life insurance risk amounts, (y) credit risk amounts and (z) market risk amounts, and (ii) operating risk amounts, with each risk amount being calculated in accordance with the detailed criteria set forth under the Regulation on Supervision of Insurance Business and the Detailed Enforcement Regulations on Insurance Supervision, and (b) (xx) other required capital, which is the required capital for subsidiaries or other entities to which basic required capital is difficult to apply, which is calculated in accordance with the criteria set forth by the governor of the Financial Supervisory Service minus (yy) the amount of adjusted corporate tax calculated in accordance with the criteria determined by the governor of the Financial Supervisory Service as the amount of loss that can be compensated by increased net deferred corporate tax assets, in the event the loss corresponds to the amount of the basic required capital. On January 1, 2023, the Financial Supervisory Service introduced K-ICS, a new regulatory solvency regime for insurance companies based on the International Capital Standard developed by the International Association of Insurance Supervisors, which is similar in substance to the Solvency II Directive of the European Union. The Solvency II Directive, which has been in effect in the European Union since January 1, 2016, is a comprehensive program of regulatory requirements for insurance companies, covering authorization, corporate governance, supervisory reporting, public disclosure and risk assessment and management, as well as solvency. Under K-ICS, insurance contract liabilities are expected to be measured based on market value, rather than book value, at the time of the computation of available capital. K-ICS has also introduced new risk subcategories, including those related to termination, business expenses, longevity, catastrophes and asset concentration, to be considered at the time of the computation of required capital. It is expected that these changes, among others, would require a number of insurance companies in Korea with a large portfolio of high guaranteed rate of return products to obtain additional capital to meet their capital adequacy requirements. However, the Financial Supervisory Service has allowed for a gradual deduction from available capital and a gradual recognition of risks in relation to required capital, for up to ten years. In order to ease the burden on insurance companies, corrective measures will be withheld for up to five years even if the solvency ratio under K-ICS is less than 100%, if the risk-based capital adequacy ratio exceeds 100%. Regulations on Class Actions Regarding Securities The Law on Class Actions Regarding Securities was enacted as of January 20, 2004 and last amended on May 28, 2013. The Law on Class Actions Regarding Securities governs class actions suits instituted by one or more representative plaintiff(s) on behalf of 50 or more persons who claim to have been damaged in a capital markets transaction involving securities issued by a listed company in Korea. 99 Table of Contents Applicable causes of action with respect to such suits include: • claims for damages caused by misleading information contained in a securities statement; • claims for damages caused by the filing of a misleading business report, semi-annual report, or quarterly report; • claims for damages caused by insider trading or market manipulation; and • claims instituted against auditors for damages caused by accounting irregularities. Any such class action may be instituted upon approval from the presiding court and the outcome of such class action will have a binding effect on all potential plaintiffs who have not joined the action, with the exception of those who have filed an opt out notice with such court. Financial Investment Services and Capital Markets Act The Financial Investment Services and Capital Markets Act, which became effective in February 2009, regulates and governs the financial investment business in Korea. The entities that regulate and supervise financial investment companies are the Financial Services Commission, the Financial Supervisory Service and the Securities and Futures Commission. Under the Financial Investment Services and Capital Markets Act, a company must obtain a license from the Financial Services Commission to commence a financial investment business such as a brokerage business, a dealing business or an underwriting business, or register with the Financial Services Commission to commence a financial investment business such as an investment advisory business or a discretionary investment management business. A bank is permitted to engage in certain types of financial investment business as specified under the Enforcement Decree of the Bank Act. Prior to commencing a financial investment business, a bank must file a report with the Financial Services Commission and apply for a license pursuant to the Financial Investment Services and Capital Markets Act. Consolidation of Capital Markets-Related Laws Prior to the effectiveness of the Financial Investment Services and Capital Markets Act, there were separate laws regulating various types of financial institutions depending on the type of financial institution (for example, securities companies, futures companies, trust business companies and asset management companies) and subjecting financial institutions to different licensing and ongoing regulatory requirements (for example, the Korean Securities Exchange Act, the Futures Business Act and the Indirect Investment Asset Management Business Act). By applying one uniform set of rules to the same financial business having the same economic function, the Financial Investment Services and Capital Markets Act attempts to improve and address issues caused by the previous regulatory system under which the same economic function relating to capital markets-related businesses are governed by multiple regulations. To this end, the Financial Investment Services and Capital Markets Act categorizes capital markets-related businesses into six different functions, as follows: • dealing, trading and underwriting of “financial investment products” (as defined below); • brokerage of financial investment products; • establishment of collective investment schemes and the management thereof; • investment advice; • discretionary investment management; and • trusts (together with the five businesses set forth above, the “Financial Investment Businesses”). Accordingly, all financial businesses relating to financial investment products have been reclassified as one or more of the Financial Investment Businesses described above, and financial institutions are subject to the 100 Table of Contents regulations applicable to their relevant Financial Investment Businesses, regardless of the type of the financial institution. For example, under the Financial Investment Services and Capital Markets Act, derivative businesses conducted by former securities companies and future companies will be subject to the same regulations. Banking and insurance businesses are not subject to the Financial Investment Services and Capital Markets Act and will continue to be regulated under separate laws. However, they may become subject to the Financial Investment Services and Capital Markets Act if their activities involve any financial investment businesses requiring a license pursuant to the Financial Investment Services and Capital Markets Act. Comprehensive Definition of Financial Investment Products In an effort to encompass the various types of securities and derivative products available in the capital markets, the Financial Investment Services and Capital Markets Act sets forth a comprehensive term “financial investment products,” defined to mean all financial products with a risk of loss in the invested amount (in contrast to “deposits,” which are financial products for which the invested amount is protected or preserved). Financial investment products are classified into two major categories: (i) “securities” (financial investment products in which the risk of loss is limited to the invested amount) and (ii) “derivatives” (financial investment products in which the risk of loss may exceed the invested amount). As a result of the general and broad definition of financial investment products, a variety of financial products may be defined as a financial investment product, which would enable Financial Investment Companies (defined below) to handle a broader range of financial products. Under the Financial Investment Services and Capital Markets Act, entities formerly licensed as securities companies, asset management companies, futures companies and other entities engaging in any Financial Investment Business are classified as “Financial Investment Companies.” New License System and the Conversion of Existing Licenses Under the Financial Investment Services and Capital Markets Act, Financial Investment Companies are able to choose the type of Financial Investment Business in which to engage (through a “check the box” method set forth in the relevant license application), by specifying the desired (i) Financial Investment Business, (ii) financial investment product and (iii) target customers to which financial investment products may be sold or distributed (that is, general investors or professional investors). Licenses will be issued under the specific business sub-categories described in the foregoing sentence. For example, it would be possible for a Financial Investment Company to obtain a license to engage in the Financial Investment Business of (i) dealing (ii) over the counter derivatives products (iii) only with sophisticated investors. Financial institutions that engage in business activities constituting a Financial Investment Business are required to take certain steps, such as renewal of their license or registration, in order to continue engaging in such business activities. Financial institutions that are not licensed Financial Investment Companies are not permitted to engage in any Financial Investment Business. Expanded Business Scope of Financial Investment Companies Under the previous regulatory regime in Korea, it was difficult for a financial institution to explore a new line of business or expand upon its existing line of business. For example, previously a financial institution licensed as a securities company generally was not permitted to engage in the asset management business. In contrast, under the Financial Investment Services and Capital Markets Act, pursuant to the integration of its current businesses involving financial investment products into a single Financial Investment Business, a licensed Financial Investment Company is permitted to engage in all types of Financial Investment Businesses, subject to satisfying relevant regulations (for example, maintaining an adequate “Chinese Wall,” to the extent required). As to incidental businesses (that is, a financial related business which is not a Financial Investment Business), the Financial Investment Services and Capital Markets Act generally allows a Financial Investment Company to freely engage in such incidental businesses by shifting away from the previous positive-list system 101 Table of Contents towards a more comprehensive system. In addition, a Financial Investment Company is permitted to (i) outsource marketing activities by contracting “introducing brokers” that are individuals but not employees of the Financial Investment Company, (ii) engage in foreign exchange businesses related to their Financial Investment Business and (iii) participate in the settlement network, pursuant to an agreement among the settlement network participants. Improvement in Investor Protection Mechanism While the Financial Investment Services and Capital Markets Act widens the scope of financial businesses in which financial institutions are permitted to engage, a more rigorous investor-protection mechanism is also imposed upon Financial Investment Companies dealing in financial investment products. The Financial Investment Services and Capital Markets Act distinguishes general investors from sophisticated investors and provides new or enhanced protections to general investors. For instance, the Financial Investment Services and Capital Markets Act expressly provides for a strict know-your-customer rule for general investors and imposes an obligation that Financial Investment Companies should market financial investment products suitable to each general investor, using written explanatory materials. Under the Financial Investment Services and Capital Markets Act, a Financial Investment Company could be liable if a general investor proves (i) damage or losses relating to such general investor’s investment in financial investment products solicited by such Financial Investment Company and (ii) the absence of the requisite written explanatory materials, without having to prove fault or causation. With respect to conflicts of interest between Financial Investment Companies and investors, the Financial Investment Services and Capital Markets Act expressly requires (i) disclosure of any conflict of interest to investors and (ii) mitigation of conflicts of interest to a comfortable level or abstention from the relevant transaction. Other Changes to Securities / Fund Regulations The Financial Investment Services and Capital Markets Act changed various securities regulations including those relating to public disclosure, insider trading and proxy contests, which were previously governed by the Korean Securities Exchange Act. For example, the 5% and 10% reporting obligations under the Korean Securities Exchange Act have become more stringent. The Indirect Investment and Asset Management Business Act strictly limited the kind of vehicles that could be utilized under a collective investment scheme, restricting the range of potential vehicles to trusts and corporations, and the type of funds that can be used for investments. However, under the Financial Investment Services and Capital Markets Act, these restrictions have been significantly liberalized, permitting all vehicles that may be created under Korean law, such as limited liability companies or partnerships, to be used for the purpose of collective investments and allowing investment funds to be more flexible as to their investments. Act on the Corporate Governance of Financial Companies The Act on the Corporate Governance of Financial Companies, which became effective on August 1, 2016, was enacted to address the need for strengthened regulations on corporate governance of financial institutions and to serve as a uniform set of regulations on corporate governance matters applicable to financial institutions across a variety of industry sectors. It contains several key measures, including (i) eligibility requirements for officers of financial institutions and standards for determining whether officers of financial institutions may hold concurrent positions in other companies, (ii) standards for composition and operation of the board of directors of financial institutions, (iii) standards for establishment, composition and operation of various committees of the board of directors of financial institutions, (iv) regulations on internal control and risk management, (v) requirements and procedures for the approval of a change of major shareholders and (vi) special regulations to protect the rights of minority shareholders of financial institutions. An amendment to the Act on the Corporate Governance of Financial Companies, which became effective on July 3, 2024, added certain additional requirements including (i) preparing and submitting a “responsibilities map” to the financial authorities which clarifies the scope and details of each officer’s accountability concerning internal control matters and (ii) establishing an internal control committee, of which more than half of the members must be outside directors. 102 Table of Contents Financial Consumer Protection Act The Financial Consumer Protection Act became effective on March 25, 2021, and certain provisions relating to internal control under such Act have become effective on September 25, 2021. The Financial Consumer Protection Act aims to enhance measures to protect financial consumers and to establish a sound market order in the financial product sales and advisory businesses. The Financial Consumer Protection Act consolidates existing regulations relating to the sale of financial products and consumer protection stipulated in other laws governing the financial sector, such as the Financial Investment Services and Capital Markets Act, the Banking Act and the Insurance Business Act, and applies to the financial industry on a cross-sectoral basis. Application of the Financial Consumer Protection Act All financial products that are classified as (i) deposits, (ii) loans, (iii) investment products or (iv) insurance products are subject to the Financial Consumer Protection Act. These four types of products encompass most of the products covered by the Bank Act, the Financial Investment Services and Capital Markets Act and the Insurance Business Act. Financial products offered by credit unions, peer-to-peer (P2P) lending firms and registered credit service providers are also regulated by the Financial Consumer Protection Act. Six Principles Regulating Selling Activities The Financial Consumer Protection Act consolidates previously scattered regulations regarding financial business operations into six uniform standards that cover the following: (i) suitability, (ii) appropriateness, (iii) duty to explain, (iv) unfair sales practices, (v) improper solicitation and (vi) advertisements. Among these six principles, suitability, appropriateness and duty to explain apply only to “general financial consumers,” although “professional financial consumers” may elect to be treated as “general financial consumers,” in which case all six principles would apply to them. Internal Control Requirements for Consumer Protection The Financial Consumer Protection Act requires sellers of financial products to have adequate internal control standards to protect consumers. The Enforcement Decree to the Financial Consumer Protection Act sets forth details of certain of the internal control standards as follows: • Establishment of the authority and responsibilities of the decision maker, such as the representative director or a director, in the implementation of internal control measures; • Development of an organizational structure and designation of personnel responsible for consumer protection matters, including the establishment of a financial consumer protection committee; • Implementation of (i) inter-departmental consultation procedures for the development and sale of financial products, (ii) processes for internal deliberations and the incorporation of opinions from independent third party advisors, (iii) standards for vetting advertisements, (iv) mandatory training requirements for officers and employees and implementation of qualification requirements, (v) standards for the prevention of conflicts of interest, (vi) proper management of confidential information, and (vii) disclosure obligations when potential harm to consumers arises; and • Establishment of standards for performance-based compensation of officers and employees in charge of sales of financial products. Right to Withdraw Subscriptions and Right to Terminate Contracts Under the Financial Consumer Protection Act, consumers have the right to withdraw subscriptions, allowing them to receive a refund during a statutory cooling-off period following the execution of the relevant subscription agreement. This right generally applies to all types of financial products with the exception of deposits, although in the case of investment products, the right to withdraw applies only to highly complex funds and trusts. Consumers also have the right to terminate a contract if the sellers violate the Financial Consumer Protection Act 103 Table of Contents in relation to the sales process. The right to terminate contracts applies to long-term contracts but such right must be exercised within one year from the time that the customer becomes aware that the financial product was sold in violation of the regulatory requirements. Punitive Penalty Surcharges In case of a violation of the principles regarding the duty to explain, unfair sales practices, improper solicitation and advertisements, sellers are subject to a punitive penalty of up to half the “amount that is the purpose of the contract” (which would be the deposit amount in case of deposit products, loan amount in case of loan products, investment amount in case of investment products, and insurance premium in case of insurance products), depending on the severity of the violation of the Financial Consumer Protection Act. Amendments to the Korean Commercial Code In 2025 and 2026, the National Assembly of Korea enacted a series of amendments to the Korean Commercial Code to strengthen shareholder protection and enhance corporate governance standards for listed companies. In July 2025, the first round of amendments expanded the scope of a director’s fiduciary duty to include “the total body of shareholders,” renamed the term “Outside Directors” to “Independent Directors,” and extended the 3% cap on voting rights for major shareholders and their related parties to the election of all audit committee members, regardless of their status as an independent director. For large-scale listed companies like us, the amendments also mandated electronic shareholder meetings to strengthen minority shareholder protection. In September 2025, a second round of amendments further mandated the use of cumulative voting for large-scale listed companies and increased the minimum number of audit committee members elected separately from one to two. In March 2026, a third round of amendments mandated the cancelation of treasury shares within one year of acquisition. As an exception, a company may continue holding or disposing of its treasury shares if its board of directors formulates a holding or disposal plan and obtains approval from the general meeting of shareholders, which approval must be re-obtained for each fiscal year. Environment, Social Responsibility and Corporate Governance Under our mission slogan, “financial services delivering changes,” we are committed to a management philosophy focused on issues relating to the environment, social responsibility and corporate governance (“ESG”). Our ESG strategy focuses on embedding ESG principles across all business operations by strengthening climate risk management, fostering an inclusive society, and enhancing corporate governance transparency. We have also developed the “KB Green Wave 2030” program to fulfill our responsibility as a leading financial group and to become a more trusted company by our stakeholders. Under this program, we plan to increase the total value of our ESG-related products, investments and loans to ￦50 trillion by 2030. In addition, we have established a group-wide carbon neutrality program called “KB Net Zero S.T.A.R.” to effectively respond to the challenges posed by climate change. Pursuant to the program, we intend to reduce our own carbon emissions by 42% by 2030 to achieve carbon neutrality by 2040 and to reduce carbon emissions from our asset portfolio companies by 33% by 2030 to achieve carbon neutrality by 2050. Moreover, we have established the “KB Diversity 2027” program, which is our mid- to long-term plan aimed at achieving our diversity goals and cultivating a more inclusive culture. The program includes specific goals to promote diversity, such as increasing the share of hires from diverse backgrounds, including people with disabilities, veterans, people from multicultural families and basic livelihood security recipients, to 15%, as well as increasing the ratio of female leaders to 20% and female core professionals to 30%, by 2027. Since 2011, we have published a group-wide sustainability report on our website on an annual basis. 104 Table of Contents Item 4.C. Organizational Structure The following chart provides an overview of our structure, including our significant subsidiaries and our ownership of such subsidiaries as of March 31, 2026: 105 Table of Contents Our largest subsidiary is Kookmin Bank, the assets of which represented approximately 73.3% of our total assets as of December 31, 2025. The following table provides summary information for our operating subsidiaries that are consolidated in our consolidated financial statements as of and for the year ended December 31, 2025, including their consolidated total assets, operating revenue, profit (loss) and total equity: Subsidiaries Total Assets Operating Revenue Profit (Loss) Total Equity (in millions of Won) Kookmin Bank ￦ 584,934,967 ￦ 42,528,587 ￦ 3,852,166 ￦ 38,955,641 KB Securities Co., Ltd. 76,461,426 14,139,480 673,856 6,888,955 KB Insurance Co., Ltd. 45,377,597 13,758,177 778,228 5,652,139 KB Kookmin Card Co., Ltd. 30,235,710 4,326,397 330,226 5,637,777 KB Life Insurance Co., Ltd. 35,585,902 3,402,468 139,329 2,789,975 KB Asset Management Co., Ltd. 697,405 325,721 120,203 395,032 KB Capital Co., Ltd. 18,163,063 2,714,031 235,219 2,679,546 KB Savings Bank Co., Ltd. 2,219,824 202,415 (4,834 ) 177,251 KB Real Estate Trust Co., Ltd. 1,124,017 177,039 (78,685 ) 394,011 KB Investment Co., Ltd. 1,675,994 353,212 57,918 341,858 KB Data Systems Co., Ltd. 85,289 295,401 7,586 29,985 Further information regarding our subsidiaries is provided below: • Kookmin Bank was established in Korea in 2001 as a result of the merger of the former Kookmin Bank (established in 1963) and H&CB (established in 1967). Kookmin Bank provides a wide range of banking and other financial services to individuals, small- and medium-sized enterprises and large corporations in Korea. As of December 31, 2025, Kookmin Bank was one of the largest commercial banks in Korea based on total assets (including loans) and deposits. As of December 31, 2025, Kookmin Bank had approximately 34.7 million customers, with 771 branches nationwide. • KB Securities Co., Ltd., formerly known as Hyundai Securities Co., Ltd., was established in Korea in 1962 to provide various securities brokerage and investment banking services. In 2016, we acquired 100% of the outstanding shares of Hyundai Securities, merged another subsidiary, KB Investment & Securities Co., Ltd., with and into Hyundai Securities and changed the name of the surviving entity to KB Securities Co., Ltd. • KB Insurance Co., Ltd., formerly known as LIG Insurance Co., Ltd., was established in Korea in January 1959 to provide non-life insurance products. KB Insurance became our wholly-owned subsidiary in July 2017 after a series of stock purchases, a tender offer and a comprehensive stock swap. • KB Kookmin Card Co., Ltd. was established in March 2011 as a separate entity upon the completion of a horizontal spin-off of Kookmin Bank’s credit card business, to provide credit card services. • KB Life Insurance Co., Ltd. was established in January 2023 as a result of the merger between the Former KB Life Insurance (established in April 2004) and Prudential Life Insurance (acquired from Prudential Financial, Inc. in August 2020), to provide life insurance and wealth management products. • KB Asset Management Co., Ltd. was established in Korea in April 1988 as a subsidiary of Citizens Investment Trust Company to provide investment advisory services. • KB Capital Co., Ltd., which provides leasing services and installment finance services, was formerly known as Woori Financial Co., Ltd. and was acquired by us in March 2014. KB Capital became our wholly-owned subsidiary in July 2017 after a tender offer followed by a comprehensive stock swap. • KB Savings Bank Co., Ltd. was established in Korea in January 2012 to provide small-loan finance services. KB Savings Bank was established in connection with our purchase of assets and assumption of liabilities of Jeil Savings Bank in January 2012. We acquired Yehansoul Savings Bank, which 106 Table of Contents provided small-loan finance services, in September 2013 and merged it with KB Savings Bank in January 2014, with KB Savings Bank as the surviving entity. • KB Real Estate Trust Co., Ltd. was established in Korea in December 1996 to provide real estate development and brokerage services by managing trusts related to the real estate industry. • KB Investment Co., Ltd. was established in Korea in March 1990 to invest in and finance small- and medium-sized enterprises. • KB Data Systems Co., Ltd. was established in Korea in September 1991 to provide software services to us and other financial institutions. In June 2023, KB Kookmin Card acquired all of the shares of KB Credit Information from us, as a result of which it is now a wholly-owned subsidiary of KB Kookmin Card. Item 4.D. Property, Plants and Equipment Our registered office and corporate headquarters are located at 26, Gukjegeumyung-ro 8-gil, Yeongdeungpo-gu, Seoul 07331, Korea. The following table presents information regarding certain of our properties in Korea: Type of facility/building Location Area (square meters) Registered office and corporate headquarters and Kookmin Bank headquarters #1 26, Gukjegeumyung-ro 8-gil Yeongdeungpo-gu, Seoul 07331 5,354 Kookmin Bank headquarters #2 141, Uisadang-daero, Yeongdeungpo-gu, Seoul 07332 4,727 KB Kookmin Card headquarters building Jongno-gu, Seoul 3,923 Kookmin Bank training institute Ilsan 207,560 Kookmin Bank training institute Daecheon 4,158 Kookmin Bank training institute Sokcho 15,559 Kookmin Bank training institute Cheonan 196,649 Kookmin Bank IT center Yeouido, Seoul 5,928 Kookmin Bank IT center Yeouido, Seoul 2,006 Kookmin Bank IT center Gimpo 13,144 Kookmin Bank support center Seongbuk-gu, Seoul 9,939 KB Securities training institute Kiheung-gu, Yongin 51,160 As of December 31, 2025, we had a countrywide network of 771 banking branches and sub-branches, as well as 486 branches and sub-branches and 191 representative offices for our other operations including our credit card, securities brokerage, insurance and consumer finance businesses. Approximately one-fifth of these facilities are housed in buildings owned by us, while the remaining branches are leased properties. See “Item 4.B. Business Overview—Capital Markets Activities and International Banking/Finance—International Banking/Finance” for a list of our overseas subsidiaries, branches and representative and liaison offices in operation as of December 31, 2025. Kookmin Bank, Gurgaon Representative Office in India converted to Kookmin Bank, Gurugram Branch in February 2019 and Kookmin Bank, Hanoi Representative Office was liquidated in September 2020. In December 2020, we established KB Bank Myanmar Ltd., a subsidiary, in Myanmar, and in January 2022, we established Kookmin Bank, Singapore Branch in Singapore. Kookmin Bank, Yangon Representative Office was liquidated in February 2023. In October 2024, we established two branches in India, Kookmin Bank, Chennai Branch and Kookmin Bank, Pune Branch. Lease terms are generally from two to three years and seldom exceed five years. We do not own any material properties outside of Korea. The net carrying amount of all the properties owned by us at December 31, 2025 was ￦3,855 billion. 107 Table of Contents