Overview The following discussion is based on our consolidated financial statements, which have been prepared in accordance with IFRS as issued by the IASB. The consolidated financial statements include the accounts of subsidiaries over which substantive control is exercised through majority ownership of voting stock and/or other means. Investments in jointly controlled entities and associates (which are companies over which we have the ability to exercise significant influence) are accounted for by the equity method of accounting. Trends in the Korean Economy Our financial position and results of operations have been and will continue to be significantly affected by financial and economic conditions in Korea. In recent years, commercial banks, consumer finance companies and other financial institutions in Korea have made significant investments and engaged in aggressive marketing in retail lending (including mortgage and home equity loans), leading to substantially increased competition in this segment. From the second half of 2016 to 2021, the Korean government introduced various measures to tighten regulations on mortgage and other lending and housing subscription in response to the rapid growth in consumer debt and concerns over speculative investments in real estate in certain areas. The Korean government subsequently relaxed some of these measures by introducing a number of policy measures that seek to sustain housing prices and activity levels in the Korean real estate market, in light of an overall decrease in housing prices over the course of 2022. However, in recent years, the Korean government began tightening regulations again in response to the continued rise in the level of consumer debt, most recently in October 2025. Housing prices in Korea fluctuated throughout 2025, with prices increasing in certain areas while decreasing in others. Any sudden changes in housing prices, including as a result of changes in Korean government policies, together with the high level of consumer debt and deteriorating domestic and global economic conditions, could result in declines in consumer spending and reduced economic growth, which may lead to increases in delinquency levels of our portfolio of retail loans. Our portfolio of retail loans increased from ￦193,803 billion as of December 31, 2024 to ￦201,645 billion as of December 31, 2025. In 2025, we recorded charge-offs of ￦621 billion and provision for credit losses of ￦631 billion in respect of our retail loan portfolio, compared to charge-offs of ￦480 billion and provision for credit losses of ￦637 billion in 2024 and charge-offs of ￦449 billion and provision for credit losses of ￦507 billion in 2023. See “Item 3.D. Risk Factors—Risks relating to our retail credit portfolio.” Our loans to small- and medium-sized enterprises increased from ￦161,239 billion as of December 31, 2024 to ￦167,873 billion as of December 31, 2025. Substantial growth in lending in Korea to small- and medium-sized enterprises in recent years, and financial difficulties experienced by such enterprises as a result of, among other things, adverse changes in economic conditions in Korea and globally, may lead to increasing delinquencies and a deterioration in overall asset quality in the credit exposures of Korean banks to small- and medium-sized enterprises. In 2025, we recorded charge-offs of ￦100 billion in respect of our loans to small- and medium-sized enterprises, compared to charge-offs of ￦34 billion in 2024 and ￦54 billion in 2023. See “Item 3.D. Risk Factors—Risks relating to our small- and medium-sized enterprise loan portfolio—We have significant exposure to small- and medium-sized enterprises, and any financial difficulties experienced by these customers may result in a deterioration of our asset quality and have an adverse impact on us.” 108 Table of Contents The Korean economy is closely tied to, and is affected by developments in, the global economy. The overall prospects for the Korean and global economy in 2026 and beyond remain uncertain. In recent years, the global financial markets have experienced significant volatility as a result of, among other things: • a deterioration in economic and trade relations between the United States and its trading partners, including as a result of the imposition of significant tariffs by the United States on its trading partners, which has been followed by retaliatory tariffs in some cases; • escalations in trade protectionism globally and geopolitical tensions in East Asia and the Middle East (including those resulting from the military conflicts between Iran and other countries, including the United States and Israel); • hostilities, political or social tensions involving Russia (including the Russia-Ukraine war and the ensuing sanctions against Russia) and the resulting adverse effects on the global supply of oil and other natural resources and the global financial markets; • interest rate fluctuations as well as perceived or actual changes in policy rates, or other monetary and fiscal policies set forth, by the U.S. Federal Reserve and other central banks; • increased uncertainties in the global financial markets and industry, including difficulties faced by several banks in the United States and Europe; • a rise in inflation rates and volatility in stock markets and exchange rates worldwide; • the slowdown of economic growth in China and other major emerging market economies; • the occurrence of severe health epidemics, such as the COVID-19 pandemic; and • financial and social difficulties affecting many countries worldwide, in particular Latin America and Europe. In light of the high level of interdependence of the global economy, unfavorable changes in the global financial markets, including as a result of any of the foregoing developments, could have a material adverse effect on the Korean economy and financial markets, and in turn on our business, financial condition and results of operations. For example, in early 2023, difficulties at several banks in the United States and Europe caused uncertainty for financial services companies, in particular the banking sector, and fear of instability in the global financial system generally, including in Korea. Future events involving limited liquidity, defaults, non-performance or other adverse developments that affect the financial services industry generally or financial institutions, transactional counterparties or other companies in the financial services industry, or concerns or rumors about any events of these kinds or other similar risks, may lead to market-wide liquidity problems or increase our risk in various dealings with our counterparties, among others. See “Item 3.D. Risk Factors—Other risks relating to our business— Adverse developments affecting the financial services industry, such as actual events or concerns involving liquidity, could adversely affect our results of operations and financial condition.” In addition, the interest rates on our interest-earning assets and interest-bearing liabilities, and therefore our net interest income, are affected by The Bank of Korea’s policy rates. Amid rising concerns of a potential global recession as a result of the COVID-19 pandemic, the Bank of Korea reduced its policy rate to 0.75% in March 2020 and 0.50% in May 2020. However, as the economy began to show signs of recovery from the COVID-19 pandemic starting from the second half of 2021, the Bank of Korea gradually raised its policy rate to pre-pandemic levels of 1.25% from August 2021 through January 2022. Furthermore, in response to rising levels of household debt and inflation in Korea as well as globally, the Bank of Korea continued to raise its policy rate to 3.50% from April 2022 through January 2023. More recently, the Bank of Korea lowered its policy rate to 3.25% in October 2024, 3.00% in November 2024, 2.75% in February 2025 and 2.50% in May 2025 in response to weak economic conditions in Korea. We are also exposed to adverse changes and volatility in the global and Korean financial markets as a result of our liabilities and assets denominated in foreign currencies and our holdings of trading and investment 109 Table of Contents securities, including structured products. The value of the Won relative to major foreign currencies in general and the U.S. dollar in particular has depreciated significantly in recent years and has been subject to significant volatility as a result of the Russia-Ukraine war and the ensuing sanctions against Russia, the escalating hostilities in the Middle East following the military conflicts between Iran and other countries, including the United States and Israel, the difference in policy rates between the United States and Korea and, more recently, the political situation in Korea following the declaration of martial law by former President Yoon Suk-yeol in December 2024 that led to his impeachment and subsequent removal in April 2025 and the election of Mr. Lee Jae-myung as President in June 2025, among others. A depreciation of the Won will increase our cost in Won of servicing our foreign currency-denominated borrowings, while continued exchange rate volatility may also result in foreign exchange losses for us. Furthermore, there have been significant fluctuations in securities prices in recent years, including the stock prices of Korean and foreign companies in which we hold an interest. Such developments may lead to trading and valuation losses on our trading and investment securities portfolio as well as impairment losses on our investments accounted for under the equity method. As a result of the volatile conditions on the Korean and global economies and financial markets, as well as factors such as fluctuations in oil and commodity prices, high inflation rates, difficulties faced by several banks in the United States and Europe, increased uncertainties resulting from geopolitical tensions, interest and exchange rate fluctuations, higher unemployment, lower consumer confidence, stock market volatility, changes in fiscal and monetary policies and continued tensions with North Korea, the economic outlook for the financial services sector in Korea in 2026 and for the foreseeable future remains highly uncertain. Acquisitions In recent years, we have engaged in a number of acquisitions, which have affected, and may continue to affect, our results of operations and their comparability from period to period. In August 2020, we acquired all of the outstanding shares of Prudential Life Insurance, which we then subsequently merged with the Former KB Life Insurance in January 2023 to form KB Life Insurance. Changes in Securities Values, Exchange Rates and Interest Rates Fluctuations of exchange rates, interest rates and stock prices affect, among other things, the demand for our products and services, the value of and rate of return on our assets, the availability and cost of funding and the financial condition of our customers. The following table shows, for the dates indicated, the stock price index of all equities listed on the KRX KOSPI Market as published in the KOSPI, the Won to U.S. dollar exchange rates and benchmark Won borrowing interest rates. June 30, 2021 Dec. 31, 2021 June 30, 2022 Dec. 31, 2022 June 30, 2023 Dec. 31, 2023 June 30, 2024 Dec. 31, 2024 June 30, 2025 Dec. 31, 2025 KOSPI 3,296.68 2,977.65 (4) 2,332.64 2,236.40 (5) 2,564.28 2,655.28 (6) 2,797.82 2,399.49 (7) 3,071.70 4,214.17 (8) ￦/US$ exchange rates(1) ￦ 1,130.4 ￦ 1,188.6 ￦ 1,299.0 ￦ 1,260.2 ￦ 1,317.8 ￦ 1,291.0 ￦ 1,376.6 ￦ 1,477.9 ￦ 1,353.5 ￦ 1,444.6 Corporate bond rates(2) 1.99 % 2.54 % 4.50 % 5.47 % 5.11 % 4.55 % 4.10 % 3.58 % 3.31 % 3.79 % Treasury bond rates(3) 1.45 % 1.80 % 3.55 % 3.73 % 3.66 % 3.15 % 3.18 % 2.60 % 2.46 % 2.95 % (1) Represents the noon buying rate on the dates indicated. (2) Measured by the yield on three-year Korean corporate bonds rated as A+ by the Korean credit rating agencies. (3) Measured by the yield on three-year treasury bonds issued by the Ministry of Finance and Economy of Korea. (4) As of December 30, 2021, the last day of trading for the KRX KOSPI Market in 2021. (5) As of December 29, 2022, the last day of trading for the KRX KOSPI Market in 2022. (6) As of December 28, 2023, the last day of trading for the KRX KOSPI Market in 2023. (7) As of December 30, 2024, the last day of trading for the KRX KOSPI Market in 2024. (8) As of December 30, 2025, the last day of trading for the KRX KOSPI Market in 2025. 110 Table of Contents Results of Operations Net Interest Income The following table shows, for the periods indicated, the principal components of our net interest income: Year Ended December 31, Percentage Change 2023 2024 2025 2024/2023 2025/2024 (in billions of Won, except percentages) (%) Interest income Due from financial institutions measured at amortized cost(1) ￦ 352 ￦ 396 ￦ 357 12.5 (9.8 ) Financial instruments at fair value through profit or loss(2) 1,415 1,459 1,436 3.1 (1.6 ) Loans(3) 23,965 24,621 23,346 2.7 (5.2 ) Financial investments (debt securities)(4) 3,389 3,985 3,980 17.6 (0.1 ) Insurance finance income 21 31 37 47.6 19.4 Total interest income 29,142 30,491 29,156 4.6 (4.4 ) Interest expense Deposits 10,053 10,379 9,098 3.2 (12.3 ) Borrowings(5) 3,067 3,185 2,845 3.8 (10.7 ) Debentures 2,307 2,623 2,636 13.7 0.5 Insurance finance expense 1,534 1,478 1,504 (3.7 ) 1.8 Total interest expense 16,961 17,665 16,083 4.2 (9.0 ) Net interest income ￦ 12,181 ￦ 12,827 ￦ 13,073 5.3 1.9 Net interest margin(6) 2.02 % 2.02 % 1.95 % (1) Consists of cash and interest-earning deposits in other banks. (2) Consists of deposits, loans and securities at fair value through profit or loss. For information on interest income arising from such financial instruments, see Note 28 of the notes to our consolidated financial statements included elsewhere in this annual report. (3) Consists of loans measured at amortized cost and others. For information on interest income arising from such loans, see Note 28 of the notes to our consolidated financial statements included elsewhere in this annual report. (4) Consists of securities measured at fair value through other comprehensive income and at amortized cost and loans at fair value through other comprehensive income. For information on interest income arising from such financial instruments, see Note 28 of the notes to our consolidated financial statements included elsewhere in this annual report. (5) Consists of borrowings and others. For information on interest expense arising from such borrowings, see Note 28 of the notes to our consolidated financial statements included elsewhere in this annual report. (6) The ratio of net interest income to average interest-earning assets. See “Item 8.A. Consolidated Statements and Other Financial Information—Profitability ratios and other data.” Comparison of 2025 to 2024 Interest income. Interest income decreased 4.4% from ￦30,491 billion in 2024 to ￦29,156 billion in 2025, primarily as a result of a 5.2% decrease in interest on loans. The average yield on our interest-earning assets decreased 44 basis points from 4.79% in 2024 to 4.35% in 2025, which mainly reflected the lower overall level of interest rates prevailing in Korea in 2025 compared to 2024, as discussed above in “—Overview—Trends in the Korean Economy.” The effect of such decrease was offset in part by a 5.4% increase in the average volume of our interest-earning assets from ￦635,903 billion in 2024 to ￦670,389 billion in 2025, principally due to growths in our loan portfolios and, to a lesser extent, our financial assets at fair value through profit or loss. 111 Table of Contents The 5.2% decrease in interest on loans from ￦24,621 billion in 2024 to ￦23,346 billion in 2025 was primarily the result of: • a 58 basis point decrease in the average yield on corporate loans from 4.65% in 2024 to 4.07% in 2025, which was offset in part by a 6.3% increase in the average volume of such loans from ￦214,225 billion in 2024 to ￦227,811 billion in 2025; • a 52 basis point decrease in the average yield on other consumer loans from 6.88% in 2024 to 6.36% in 2025, which was slightly enhanced by a 0.2% decrease in the average volume of such loans from ￦59,016 billion in 2024 to ￦58,902 billion in 2025; and • a 62 basis point decrease in the average yield on foreign-currency loans from 8.48% in 2024 to 7.86% in 2025, which was slightly offset by a 0.1% increase in the average volume of such loans from ￦36,721 billion in 2024 to ￦36,746 billion in 2025. The decreases in the average yields on corporate, other consumer and foreign-currency loans primarily reflected the lower overall level of interest rates prevailing in Korea and certain overseas markets in 2025 compared to 2024. The increases in the average volumes of corporate and foreign-currency loans were attributable primarily to increased demand for such loans from borrowers in need of financing in light of the continuing uncertainty in the Korean and global financial markets in 2025 compared to 2024. The decrease in the average volume of other consumer loans was mainly due to decreased demand for such loans, primarily reflecting the Korean government’s efforts to manage the delinquency levels of such loans in 2025. Overall, the average yield on our loans decreased by 50 basis points from 5.30% in 2024 to 4.80% in 2025, while the average volume of our loans increased by 4.7% from ￦464,544 billion in 2024 to ￦486,317 billion in 2025. Interest expense. Interest expense decreased 9.0% from ￦17,665 billion in 2024 to ￦16,083 billion in 2025, primarily due to a 12.3% decrease in interest expense on deposits, which was enhanced by a 10.7% decrease in interest expense on borrowings. The average cost of our interest-bearing liabilities decreased 40 basis points from 2.83% in 2024 to 2.43% in 2025, which was mainly due to the lower overall level of interest rates prevailing in Korea in 2025 compared to 2024, as discussed above in “—Overview—Trends in the Korean Economy.” The effect of such decrease was offset in part by a 5.9% increase in the average volume of our interest-bearing liabilities from ￦624,548 billion in 2024 to ￦661,313 billion in 2025, which was principally due to an increase in the average volume of our deposits, which was enhanced by increases in the average volumes of our insurance liabilities, borrowings and debentures. The 12.3% decrease in interest expense on deposits from ￦10,379 billion in 2024 to ￦9,098 billion in 2025 was primarily due to a 65 basis point decrease in the average cost of time deposits from 3.77% in 2024 to 3.12% in 2025, which was offset in part by a 5.6% increase in the average volume of such deposits from ￦242,061 billion in 2024 to ￦255,654 billion in 2025. The decrease in the average cost of such deposits was principally due to the lower overall level of interest rates prevailing in Korea in 2025 compared to 2024. The increase in the average volume of such deposits mainly reflected certain of our customers’ preference for low-risk products in light of the continuing uncertainty in financial markets in 2025. Overall, the average cost of our deposits decreased by 41 basis points from 2.49% in 2024 to 2.08% in 2025, while the average volume of our deposits increased 5.2% from ￦416,310 billion in 2024 to ￦437,896 billion in 2025. The 10.7% decrease in interest expense on borrowings from ￦3,185 billion in 2024 to ￦2,845 billion in 2025 was due to a 62 basis point decrease in the average cost of borrowings from 3.86% in 2024 to 3.24% in 2025, which was offset in part by a 6.5% increase in the average volume of borrowings from ￦82,444 billion in 2024 to ￦87,811 billion in 2025. The decrease in the average cost of borrowings was principally due to the lower overall level of interest rates prevailing in Korea in 2025 compared to 2024. The increase in the average volume of borrowings mainly reflected increases in the average volumes of bonds sold under repurchase agreements and borrowings from the Bank of Korea. 112 Table of Contents Net interest margin. Net interest margin represents the ratio of net interest income to average interest-earning assets. Our overall net interest margin decreased from 2.02% in 2024 to 1.95% in 2025, as a 1.9% increase in our net interest income from ￦12,827 billion in 2024 to ￦13,073 billion in 2025 was outpaced by a 5.4% increase in the average volume of our interest-earning assets from ￦635,903 billion in 2024 to ￦670,389 billion in 2025. The amount of decrease in interest expense outpaced the amount of decrease in interest income, resulting in the increase in net interest income. The growth rate in average interest-earning assets was more than offset by a 5.9% increase in average interest-bearing liabilities from ￦624,548 billion in 2024 to ￦661,313 billion in 2025. Our net interest spread, which represents the difference between the average yield on our interest-earning assets and the average cost of our interest-bearing liabilities, decreased from 1.96% in 2024 to 1.92% in 2025, as the decrease in the average yield on interest-earning assets outpaced the decrease in the average cost of interest-bearing liabilities between the two periods. Comparison of 2024 to 2023 Interest income. Interest income increased 4.6% from ￦29,142 billion in 2023 to ￦30,491 billion in 2024, primarily as a result of a 2.7% increase in interest on loans and a 17.6% increase in interest on financial investments. The average volume of our interest-earning assets increased 5.5% from ￦602,961 billion in 2023 to ￦635,903 billion in 2024, principally due to growths in our loan portfolios and our financial investments. The effect of such increase was slightly offset by a 4 basis point decrease in the average yield on our interest-earning assets from 4.83% in 2023 to 4.79% in 2024, which reflected the lower overall level of interest rates prevailing in Korea in 2024 compared to 2023 in anticipation of a decrease in policy rates, which occurred toward the end of 2024, as discussed above in “—Overview—Trends in the Korean Economy.” The 2.7% increase in interest on loans from ￦23,965 billion in 2023 to ￦24,621 billion in 2024 was primarily the result of: • a 7.9% increase in the average volume of foreign-currency loans from ￦34,045 billion in 2023 to ￦36,721 billion in 2024, which was enhanced by an 11 basis point increase in the average yield on such loans from 8.37% in 2023 to 8.48% in 2024; • a 5.0% increase in the average volume of corporate loans from ￦203,950 billion in 2023 to ￦214,225 billion in 2024, which was offset in part by a 14 basis point decrease in the average yield on such loans from 4.79% in 2023 to 4.65% in 2024; and • a 17.5% increase in the average volume of home equity loans from ￦28,213 billion in 2023 to ￦33,158 billion in 2024, which was offset in part by a 14 basis point decrease in the average yield on such loans from 4.46% in 2023 to 4.32% in 2024. The effects of such changes were offset in part by a 4.7% decrease in the average volume of other consumer loans from ￦61,922 billion in 2023 to ￦59,016 billion in 2024, which was in turn slightly offset by a 6 basis point increase in the average yield on such loans from 6.82% in 2023 to 6.88% in 2024. The increases in the average volumes of foreign-currency and corporate loans were attributable primarily to an increase in demand for such loans in light of the continuing uncertainty in the Korean and global financial markets in 2024 compared to 2023. The increase in the average volume of home equity loans was primarily attributable to an overall increase in the number of houses purchased in Korea, as the Korean real estate market recovered slightly in 2024 compared to 2023. The decrease in the average volume of other consumer loans was primarily due to a decrease in demand for such loans, reflecting lower consumer confidence in light of the increased volatility in the Korean and global economies and financial markets in 2024 compared to 2023. The increase in the average yield on foreign-currency loans primarily reflected the higher levels of interest rates applicable to loans provided by certain of our foreign subsidiaries in 2024 compared to 2023, while the increase in the average yield on other consumer loans primarily reflected the higher levels of interest rates applicable to such loans following a deterioration of the overall credit quality of such loans in 2024. The decreases in the average yields on corporate and home equity loans were mainly due to the lower overall level of interest rates 113 Table of Contents prevailing in Korea in 2024 compared to 2023 in anticipation of a decrease in policy rates, which occurred toward the end of 2024. Overall, the average volume of our loans increased 4.8% from ￦443,344 billion in 2023 to ￦464,544 billion in 2024, while the average yield on our loans decreased by 11 basis points from 5.41% in 2023 to 5.30% in 2024. Our financial investments portfolio consists of securities and loans measured at fair value through other comprehensive income and securities measured at amortized cost, including debt securities issued by government-owned or -controlled enterprises or financial institutions and debt securities issued by Korean banks and other financial institutions. The 17.6% increase in interest on financial investments from ￦3,389 billion in 2023 to ￦3,985 billion in 2024 was the result of a 26 basis point increase in the average yield on financial investments from 2.96% in 2023 to 3.22% in 2024, which was enhanced by an 8.1% increase in the average volume of financial investments from ￦114,524 billion in 2023 to ￦123,799 billion in 2024. The increase in the average yield on financial investments resulted primarily from a re-balancing of our financial investments portfolio, as we reinvested the proceeds of certain older investments with low interest rates that matured in 2024 at relatively higher interest rate levels. The increase in the average volume of financial investments was primarily due to an increase in our purchases of bonds issued by financial institutions and government and public bonds. Interest expense. Interest expense increased 4.2% from ￦16,961 billion in 2023 to ￦17,665 billion in 2024, primarily due to a 3.2% increase in interest expense on deposits and a 13.7% increase in interest expense on debentures, the effects of which were enhanced by a 3.8% increase in interest expense on borrowings. The average volume of our interest-bearing liabilities increased 6.2% from ￦588,122 billion in 2023 to ￦624,548 billion in 2024, which was principally due to an increase in the average volume of our deposits, which was enhanced by increases in the average volumes of our insurance liabilities and debentures. The effect of such increase was offset in part by a 5 basis point decrease in the average cost of our interest-bearing liabilities from 2.88% in 2023 to 2.83% in 2024, which was driven mainly by an increase in the proportion of deposits within our overall interest-bearing liabilities, which have a relatively lower average cost than our other interest-bearing liabilities. The 3.2% increase in interest expense on deposits from ￦10,053 billion in 2023 to ￦10,379 billion in 2024 was primarily due to an 8.3% increase in the average volume of time deposits from ￦223,607 billion in 2023 to ￦242,061 billion in 2024, which was offset in part by a 23 basis point decrease in the average cost of such deposits from 4.00% in 2023 to 3.77% in 2024. The increase in the average volume of such deposits mainly reflected customers’ continuing preference for low-risk products in Korea in light of the continuing uncertainty in financial markets in 2024, as well as customers’ desire to lock in the relatively higher interest rates applicable to such products in anticipation of future declines in interest rates. The decrease in the average cost of such deposits was principally due to the lower overall level of interest rates prevailing in Korea in 2024 compared to 2023 in anticipation of a decrease in policy rates, which occurred toward the end of 2024. Overall, the average volume of our deposits increased 6.3% from ￦391,511 billion in 2023 to ￦416,310 billion in 2024, while the average cost of our deposits decreased by 8 basis points from 2.57% in 2023 to 2.49% in 2024. The 13.7% increase in interest expense on debentures from ￦2,307 billion in 2023 to ￦2,623 billion in 2024 was due to a 25 basis point increase in the average cost of debentures from 3.34% in 2023 to 3.59% in 2024, which was enhanced by a 5.7% increase in the average volume of debentures from ￦69,119 billion in 2023 to ￦73,062 billion in 2024. The increase in the average cost of debentures mainly reflected a decrease in the proportion of some of our short-term debentures with low interest rates coupled with an increase in the proportion of some of our long-term debentures with relatively higher interest rates. The increase in the average volume of debentures was principally due to our increased use of debentures to meet our funding needs. The 3.8% increase in interest expense on borrowings from ￦3,067 billion in 2023 to ￦3,185 billion in 2024 was due to a 2.0% increase in the average volume of borrowings from ￦80,839 billion in 2023 to ￦82,444 billion in 2024 and a 6 basis point increase in the average cost of borrowings from 3.80% in 2023 to 3.86% in 2024. The increase in the average volume of borrowings mainly reflected our increased use of borrowings to meet our funding needs, while the increase in the average cost of borrowings mainly reflected an increase in the 114 Table of Contents proportion of some of our call moneys with high interest rates coupled with a decrease in the proportion of some of our short-term borrowings denominated in foreign currencies with relatively lower interest rates. Net interest margin. Our overall net interest margin remained stable at 2.02% in 2023 and 2024, as a 5.3% increase in our net interest income from ￦12,181 billion in 2023 to ￦12,827 billion in 2024 was matched by a 5.5% increase in the average volume of our interest-earning assets from ￦602,961 billion in 2023 to ￦635,903 billion in 2024. The amount of increase in interest income outpaced the amount of increase in interest expense, resulting in an increase in net interest income. The growth rate in average interest-earning assets was more than offset by a 6.2% increase in average interest-bearing liabilities from ￦588,122 billion in 2023 to ￦624,548 billion in 2024. Our net interest spread increased slightly from 1.95% in 2023 to 1.96% in 2024, as a decrease in the average yield on interest-earning assets was slightly outpaced by the decrease in the average cost of interest-bearing liabilities between the two periods. Provision for Credit Losses Provision for credit losses includes provision for credit losses of loans, provision for credit losses of unused loan commitments, provision for credit losses of acceptances and guarantees, provision for credit losses of financial guarantee contracts, provision for credit losses of financial investments and provision for credit losses of other financial assets, in each case net of reversal of provisions. For a discussion of our credit losses provisioning policy, see “Item 4.B. Business Overview—Assets and Liabilities—Loan Portfolio—Provisioning Policy.” In accordance with the guidelines of the Financial Supervisory Service, if our allowances and provisions for credit losses are deemed insufficient for regulatory purposes, we compensate for the difference by recording a regulatory reserve for credit losses, which is segregated within retained earnings. See “Item 4.B. Business Overview—Assets and Liabilities—Loan Portfolio—Regulatory Reserve for Credit Losses” and Note 27.5 of the notes to our consolidated financial statements included elsewhere in this annual report. Comparison of 2025 to 2024 Our provision for credit losses increased 15.6% from ￦2,044 billion in 2024 to ￦2,363 billion in 2025, primarily due to an increase in provision for credit losses of loans and a decrease in reversal of provisions for credit losses of acceptances and guarantees. Our provision for credit losses of loans increased 8.5% from ￦2,097 billion in 2024 to ￦2,276 billion in 2025, mainly due to an increase in our provision for credit losses in respect of our corporate loans. Such increase mainly reflected our provisioning strategy pursuant to which we preemptively accounted for a potential increase in credit losses that could result from a deterioration in the overall asset quality of our corporate loans, mainly due to an increasing likelihood of default by corporate borrowers in light of the general slowdown in the economy in Korea. The effect of such increase was offset in part by a decrease in our provision for credit losses in respect of our credit card receivables, mainly reflecting the re-balancing of our portfolio to improve our overall asset quality. Our loan write-offs increased 16.4% from ￦1,984 billion in 2024 to ￦2,309 billion in 2025, primarily due to increases in write-offs of retail loans and corporate loans. Our reversal of provisions for credit losses of acceptances and guarantees decreased 95.0% from ￦140 billion in 2024 to ￦7 billion in 2025, mainly reflecting the reversal of such provisions relating to Hanwha Ocean Co., Ltd. in 2024, which did not recur in 2025. Comparison of 2024 to 2023 Our provision for credit losses decreased 35.0% from ￦3,146 billion in 2023 to ￦2,044 billion in 2024, primarily due to a decrease in provision for credit losses of loans. 115 Table of Contents Our provision for credit losses of loans decreased 26.8% from ￦2,863 billion in 2023 to ￦2,097 billion in 2024, mainly due to a decrease in our provision for credit losses in respect of our corporate loans. Such decrease mainly reflected an improvement in the overall asset quality of such loans. Such decrease was offset in part by an increase in provision for credit losses in respect of our retail loans, which resulted from our provisioning strategy pursuant to which we preemptively accounted for a potential increase in credit losses that could result from a deterioration in the overall asset quality of our loan portfolios, mainly due to an increasing likelihood of default by borrowers in light of the general slowdown in the economy in Korea. Our loan write-offs increased 12.9% from ￦1,758 billion in 2023 to ￦1,984 billion in 2024, due to increases in write-offs of corporate loans, credit card receivables and retail loans. Allowances for Credit Losses of Loans We establish allowances for credit losses of loans with respect to loans to absorb such losses. We assess individually significant loans on a case-by-case basis and other loans on a collective basis. Corporate Loans. The following table shows, for the periods indicated, certain information regarding our impaired corporate loans: As of December 31, 2023 2024 2025 (%) Impaired corporate loans as a percentage of total corporate loans 1.2 1.2 1.1 Allowances for credit losses for corporate loans as a percentage of total corporate loans 1.3 1.2 1.2 Allowances for credit losses for corporate loans as a percentage of impaired corporate loans 106.9 101.4 112.0 Net charge-offs of corporate loans as a percentage of total corporate loans 0.2 0.2 0.2 During 2025, impaired corporate loans as a percentage of total corporate loans decreased, as a decrease in our impaired corporate loans was enhanced by an increase in our total corporate loans. Allowances for credit losses for corporate loans as a percentage of total corporate loans remained stable while allowances for credit losses for corporate loans as a percentage of impaired corporate loans increased, as an increase in allowances for credit losses for corporate loans was accompanied by the increase in total corporate loans and was enhanced by the decrease in impaired corporate loans. During 2024, impaired corporate loans as a percentage of total corporate loans remained stable, as our impaired corporate loans and our total corporate loans increased. Allowances for credit losses for corporate loans as a percentage of both total corporate loans and impaired corporate loans decreased during 2024, as the increases in our total corporate loans and our impaired corporate loans outpaced the increase in our allowances for credit losses for corporate loans. Retail Loans. The following table shows, for the periods indicated, certain information regarding our impaired retail loans: As of December 31, 2023 2024 2025 (%) Impaired retail loans as a percentage of total retail loans 0.6 0.6 0.6 Allowances for credit losses for retail loans as a percentage of total retail loans 0.7 0.8 0.7 Allowances for credit losses for retail loans as a percentage of impaired retail loans 118.2 122.5 111.1 Net charge-offs of retail loans as a percentage of total retail loans 0.3 0.3 0.3 116 Table of Contents During 2025, impaired retail loans as a percentage of total retail loans remained stable, as our impaired retail loans and our total retail loans increased. Allowances for credit losses for retail loans as a percentage of both total retail loans and impaired retail loans decreased during 2025, as a decrease in our allowances for credit losses for retail loans was enhanced by the increases in both our total retail loans and our impaired retail loans. During 2024, impaired retail loans as a percentage of total retail loans remained stable, as our impaired retail loans and our total retail loans increased. Allowances for credit losses for retail loans as a percentage of both total retail loans and impaired retail loans increased during 2024, as an increase in our allowances for credit losses for retail loans outpaced the increases in both our total retail loans and our impaired retail loans. Credit Card Balances. The following table shows, for the periods indicated, certain information regarding our impaired credit card balances: As of December 31, 2023 2024 2025 (%) Impaired credit card balances as a percentage of total credit card balances 3.6 2.5 1.4 Allowances for credit losses for credit card balances as a percentage of total credit card balances 4.2 3.7 3.1 Allowances for credit losses for credit card balances as a percentage of impaired credit card balances 117.6 148.7 218.9 Net charge-offs as a percentage of total credit card balances 2.5 2.5 2.3 During 2025, impaired credit card balances as a percentage of total credit card balances decreased as the rate of decrease in our impaired credit card balances outpaced the rate of decrease in our total credit card balances. Allowances for credit losses for credit card balances as a percentage of total credit card balances decreased during 2025, as the rate of decrease in allowances for credit losses for credit card balances outpaced the rate of decrease in our total credit card balances. However, allowances for credit losses for credit card balances as a percentage of impaired credit card balances increased, as the rate of decrease in the amount of our allowances for credit losses for credit card balances was outpaced by the rate of decrease of our impaired credit card balances. During 2024, impaired credit card balances as a percentage of total credit card balances decreased due to a decrease in our impaired credit card balances, as well as an increase in our total credit card balances. Allowances for credit losses for credit card balances as a percentage of total credit card balances decreased during 2024, as allowances for credit losses for credit card balances decreased while our total credit card balances increased. However, allowances for credit losses for credit card balances as a percentage of impaired credit card balances increased, as the rate of decrease in the amount of our allowances for credit losses for credit card balances was outpaced by the rate of decrease of our impaired credit card balances. Net Fee and Commission Income The following table shows, for the periods indicated, the components of our net fee and commission income: Year Ended December 31, Percentage Change 2023 2024 2025 2024/2023 2025/2024 (in billions of Won) (%) Fee and commission income ￦ 5,368 ￦ 5,482 ￦ 5,774 2.1 5.3 Fee and commission expense (1,695 ) (1,632 ) (1,675 ) (3.7 ) 2.6 Net fee and commission income ￦ 3,674 ￦ 3,850 ￦ 4,098 4.8 6.4 117 Table of Contents Comparison of 2025 to 2024 Our net fee and commission income increased 6.4% from ￦3,850 billion in 2024 to ￦4,098 billion in 2025, due to 5.3% increase in fee and commission income from ￦5,482 billion in 2024 to ￦5,774 billion in 2025, which was offset in part by a 2.6% increase in fee and commission expense from ￦1,632 billion in 2024 to ￦1,675 billion in 2025. The 5.3% increase in fee and commission income was primarily due to a 16.7% increase in commissions received on securities business from ￦663 billion in 2024 to ￦774 billion in 2025 and a 24.3% increase in foreign currency related fees received from ￦362 billion in 2024 to ￦450 billion in 2025, which were enhanced by, to lesser extents, increases in fund management related fees received, trust and other fiduciary fees received, miscellaneous other fees received, securities agency fees received and agent activity fees received. The effects of such increases were offset in part by a 5.5% decrease in credit card and debit card related fees received from ￦1,662 billion in 2024 to ￦1,571 billion in 2025 and, to a lesser extent, a 3.8% decrease in lease fees received from ￦1,120 billion in 2024 to ￦1,078 billion in 2025. The increase in commissions received on securities business was mainly due to an increase in securities brokerage commissions, while the increase in foreign currency related fees was primarily attributable to an increase in the number of foreign currency transactions, each of which resulted from an increase in the volume of activities in the Korean securities trading market in 2025 compared to 2024. The decrease in credit card and debit card related fees received was primarily due to a decrease in the rate of merchant fees charged, while the decrease in lease fees received was mainly due to a decrease in fees received on automobile rental fees and other lease-related income. The 2.6% increase in fee and commission expense was principally attributable to 9.5% increase in other miscellaneous fees paid from ￦454 billion in 2024 to ￦497 billion in 2025, which in turn was mainly due to increases in other miscellaneous fees paid by KB Securities and KB Kookmin Card. Comparison of 2024 to 2023 Our net fee and commission income increased 4.8% from ￦3,674 billion in 2023 to ￦3,850 billion in 2024, due to a 2.1% increase in fee and commission income from ￦5,368 billion in 2023 to ￦5,482 billion in 2024, which was enhanced by a 3.7% decrease in fee and commission expense from ￦1,695 billion in 2023 to ￦1,632 billion in 2024. The 2.1% increase in fee and commission income was primarily due to a 3.9% increase in credit card and debit card related fees received from ￦1,599 billion in 2023 to ￦1,662 billion in 2024 and a 17.2% increase in foreign currency related fees received from ￦309 billion in 2023 to ￦362 billion in 2024, which were enhanced by, to lesser extents, increases in lease fees, acceptances and guarantees fees, lending activity fees and agent activity fees received. The effects of such increases were offset in part by a 23.2% decrease in trust and other fiduciary fees received from ￦375 billion in 2023 to ￦288 billion in 2024. The increase in credit card and debit card related fees received was mainly due to an increase in the use of credit cards and debit cards by our customers, and the increase in foreign currency related fees received was mainly due to an increase in the number of foreign currency transactions conducted by our customers. The decrease in trust and other fiduciary fees received was primarily due to a decrease in trust fees, which in turn resulted mainly from a decrease in land trust fees received by KB Real Estate Trust. The 3.7% decrease in fee and commission expense was principally attributable to a 4.3% decrease in credit card and debit card related fees paid from ￦862 billion in 2023 to ￦825 billion in 2024, a 5.6% decrease in other miscellaneous fees paid from ￦481 billion in 2023 to ￦454 billion in 2024 and a 10.7% decrease in outsourcing related fees paid from ￦168 billion in 2023 to ￦150 billion in 2024. The effects of such decreases were offset in part by a 26.9% increase in foreign currency related fees paid from ￦93 billion in 2023 to ￦118 billion in 2024. The decrease in credit card and debit card related fees paid was mainly due to a decrease in marketing fees paid by KB Kookmin Card, the decrease in other miscellaneous fees paid was mainly due to a 118 Table of Contents decrease in securitization-related commission expenses paid by KB Kookmin Card, and the decrease in outsourcing related fees paid was primarily due to decreases in consulting and other miscellaneous fees paid by KB Kookmin Card and KB Insurance. The increase in foreign currency related fees paid was mainly due to an increase in the number of foreign currency transactions conducted by our customers. Net Insurance Income The following table shows, for the periods indicated, the components of our net insurance income: Year Ended December 31, Percentage Change 2023 2024 2025 2024/2023 2025/2024 (in billions of Won) (%) Insurance income ￦ 11,005 ￦ 11,456 ￦ 12,377 4.1 8.0 Insurance expense (9,559 ) (9,806 ) (11,073 ) 2.6 12.9 Net insurance income ￦ 1,447 ￦ 1,650 ￦ 1,303 14.0 (21.0 ) Comparison of 2025 to 2024 Our net insurance income decreased 21.0% from ￦1,650 billion in 2024 to ￦1,303 billion in 2025, due to a 12.9% increase in insurance expense from ￦9,806 billion in 2024 to ￦11,073 billion in 2025, which was offset in part by an 8.0% increase in insurance income from ￦11,456 billion in 2024 to ￦12,377 billion in 2025. The increase in insurance expense was due to a 15.0% increase in insurance service expense from ￦8,884 billion in 2024 to ￦10,213 billion in 2025, which was slightly offset by a 6.7% decrease in reinsurance expense from ￦922 billion in 2024 to ￦860 billion in 2025. The increase in insurance service expense was primarily due to a 15.4% increase in long-term non-life insurance expense from ￦4,728 billion in 2024 to ￦5,455 billion in 2025, which was enhanced by a 45.2% increase in general non-life insurance expense from ￦897 billion in 2024 to ￦1,302 billion in 2025 and, to a lesser extent, a 4.6% increase in automobile insurance expense from ￦2,792 billion in 2024 to ￦2,921 billion in 2025. The increase in insurance income was primarily due to a 5.8% increase in insurance revenue from ￦11,017 billion in 2024 to ￦11,652 billion in 2025, which was enhanced by a 65.1% increase in reinsurance revenue from ￦439 billion in 2024 to ￦725 billion in 2025. The increase in insurance revenue was primarily due to a 9.1% increase in long-term non-life insurance income from ￦5,800 billion in 2024 to ￦6,325 billion in 2025, which was enhanced by a 4.2% increase in general non-life insurance income from ￦1,362 billion in 2024 to ￦1,419 billion in 2025. Comparison of 2024 to 2023 Our net insurance income increased 14.0% from ￦1,447 billion in 2023 to ￦1,650 billion in 2024, due to a 4.1% increase in insurance income from ￦11,005 billion in 2023 to ￦11,456 billion in 2024, which was offset in part by a 2.6% increase in insurance expense from ￦9,559 billion in 2023 to ￦9,806 billion in 2024. The increase in insurance income was due to a 6.7% increase in insurance revenue from ￦10,322 billion in 2023 to ￦11,017 billion in 2024, which was offset in part by a 35.7% decrease in reinsurance revenue from ￦683 billion in 2023 to ￦439 billion in 2024. The increase in insurance revenue was primarily due to a 9.3% increase in long-term non-life insurance income from ￦5,306 billion in 2023 to ￦5,800 billion in 2024, which was enhanced by a 3.9% increase in automobile insurance income from ￦2,715 billion in 2023 to ￦2,820 billion in 2024. 119 Table of Contents The increase in insurance expense was primarily attributable to a 1.9% increase in insurance service expense from ￦8,721 billion in 2023 to ￦8,884 billion in 2024 and, to a lesser extent, a 10.0% increase in reinsurance expense from ￦838 billion in 2023 to ￦922 billion in 2024. The increase in insurance service expense was primarily due to a 6.0% increase in long-term non-life insurance expense from ￦4,459 billion in 2023 to ￦4,728 billion in 2024, which was enhanced by a 5.7% increase in automobile insurance expense from ￦2,642 billion in 2023 to ￦2,792 billion in 2024, the effects of which were offset in part by an 86.4% decrease in overseas insurance expense from ￦162 billion in 2023 to ￦22 billion in 2024. For further information regarding our net insurance income, see Note 38 of the notes to our consolidated financial statements included elsewhere in this annual report. Net Gains on Financial Instruments at Fair Value through Profit or Loss The following table shows, for the periods indicated, the components of our net gains on financial instruments at fair value through profit or loss: Year Ended December 31, Percentage Change 2023 2024 2025 2024/2023 2025/2024 (in billions of Won) (%) Net gains on financial assets at fair value through profit or loss ￦ 3,243 ￦ 1,914 ￦ 4,934 (41.0 ) 157.8 Net losses on derivatives held for trading (431 ) (583 ) (412 ) 35.3 (29.3 ) Net losses on financial liabilities at fair value through profit or loss (318 ) (2 ) (628 ) (99.4 ) N/M (1) Net losses on financial instruments designated at fair value through profit or loss (331 ) (317 ) (513 ) (4.2 ) 61.8 Net gains on financial instruments at fair value through profit or loss ￦ 2,163 ￦ 1,012 ￦ 3,380 (53.2 ) 234.0 (1) “N/M” means not meaningful. Comparison of 2025 to 2024 Our net gains on financial instruments at fair value through profit or loss increased three-fold from ￦1,012 billion in 2024 to ￦3,380 billion in 2025. Such increase was primarily attributable to a 157.8% increase in net gains on financial assets at fair value through profit or loss, the effect of which was offset in part by a significant increase in net losses on financial liabilities at fair value through profit or loss. • Our net gains on financial assets at fair value through profit or loss increased 157.8% from ￦1,914 billion in 2024 to ￦4,934 billion in 2025, due to a change in net gains (losses) on equity securities held for trading from net losses of ￦167 billion in 2024 to net gains of ￦2,612 billion in 2025, which was enhanced by an 11.6% increase in net gains on debt securities held for trading from ￦2,081 billion in 2024 to ￦2,322 billion in 2025. • Our net losses on financial liabilities at fair value through profit or loss increased significantly from ￦2 billion in 2024 to ￦628 billion in 2025. Such increase was attributable to a 121.5% increase in losses on financial liabilities at fair value through profit or loss from ￦358 billion in 2024 to ￦793 billion in 2025, which was enhanced by a 54.1% decrease in gains on financial liabilities at fair value through profit or loss from ￦357 billion in 2024 to ￦164 billion in 2025. Comparison of 2024 to 2023 Our net gains on financial instruments at fair value through profit or loss decreased 53.2% from ￦2,163 billion in 2023 to ￦1,012 billion in 2024. Such decrease was primarily attributable to a 41.0% decrease in net 120 Table of Contents gains on financial assets at fair value through profit or loss, the effect of which was offset in part by a 99.4% decrease in net losses on financial liabilities at fair value through profit or loss. • Our net gains on financial assets at fair value through profit or loss decreased 41.0% from ￦3,243 billion in 2023 to ￦1,914 billion in 2024, due to a 25.6% decrease in net gain on debt securities held for trading from ￦2,797 billion in 2023 to ￦2,081 billion in 2024, which was enhanced by a change in net gains (losses) on equity securities held for trading from net gains of ￦446 billion in 2023 to net losses of ￦167 billion in 2024. • Our net losses on financial liabilities at fair value through profit or loss decreased by 99.4% from ￦318 billion in 2023 to ￦2 billion in 2024. Such change was attributable to an 85.9% increase in gains on financial liabilities at fair value through profit or loss from ￦192 billion in 2023 to ￦357 billion in 2024 and a 29.8% decrease in losses on financial liabilities at fair value through profit or loss from ￦510 billion in 2023 to ￦358 billion in 2024. For further information regarding our net gains on financial instruments at fair value through profit or loss, see Note 30 of the notes to our consolidated financial statements included elsewhere in this annual report. Net Other Insurance Finance Income (Expenses) Other insurance finance income (expense) arising on insurance contracts reflects the change in the effect of the time value of money arising from the passage of time and the effect of changes in financial assumptions. For a detailed description of items that comprise other insurance finance income (expense), see Note 38.8 of the notes to our consolidated financial statements included elsewhere in this annual report. Comparison of 2025 to 2024 Our net other insurance finance expenses increased 135.0% from ￦437 billion in 2024 to ￦1,027 billion in 2025, primarily due to an increase in other insurance finance expenses from our variable life insurance products. Comparison of 2024 to 2023 Our net other insurance finance expenses decreased 23.6% from ￦572 billion in 2023 to ￦437 billion in 2024, primarily due to a decrease in other insurance finance expenses of our variable life insurance. General and Administrative Expenses The following table shows, for the periods indicated, the components of our general and administrative expenses: Year Ended December 31, Percentage Change 2023 2024 2025 2024/2023 2025/2024 (in billions of Won) (%) Expenses related to employees ￦ 4,014 ￦ 4,221 ￦ 4,315 5.2 2.2 Depreciation and amortization 866 916 915 5.8 (0.1 ) Other general and administrative expenses 1,767 1,801 1,834 1.9 1.8 General and administrative expenses ￦ 6,647 ￦ 6,939 ￦ 7,065 4.4 1.8 Comparison of 2025 to 2024 Our general and administrative expenses increased 1.8% from ￦6,939 billion in 2024 to ￦7,065 billion in 2025, primarily due to a 2.2% increase in expenses related to employees from ￦4,221 billion in 2024 to ￦4,315 billion in 2025, and to a lesser extent, a 1.8% increase in other general and administrative expenses from ￦1,801 billion in 2024 to ￦1,834 billion in 2025. 121 Table of Contents The increase in expenses related to employees was attributable mainly to a 4.5% increase in salaries from ￦2,707 billion in 2024 to ￦2,828 billion in 2025, which was offset in part by a 14.3% decrease in termination benefits from ￦307 billion in 2024 to ￦263 billion in 2025. The increase in salaries paid was mainly due to general increases in wages paid to the employees of KB Securities. The decrease in termination benefits was mainly due to decreases in the number of employees participating in our early retirement programs and the amount of termination benefits granted per employee. The increase in other general and administrative expenses was mainly attributable to a 7.6% increase in electronic data processing expenses paid from ￦353 billion in 2024 to ￦380 billion in 2025 and a 5.2% increase in taxes and dues paid from ￦325 billion in 2024 to ￦342 billion in 2025, the effects of which were offset in part by a 6.0% decrease in service fees paid from ￦250 billion in 2024 to ￦235 billion in 2025. Comparison of 2024 to 2023 Our general and administrative expenses increased 4.4% from ￦6,647 billion in 2023 to ￦6,939 billion in 2024, as a result of a 5.2% increase in expenses related to employees from ￦4,014 billion in 2023 to ￦4,221 billion in 2024, and to lesser extents, a 5.8% increase in depreciation and amortization expenses from ￦866 billion in 2023 to ￦916 billion in 2024 and a 1.9% increase in other general and administrative expenses from ￦1,767 billion in 2023 to ￦1,801 billion in 2024. The increase in expenses related to employees was attributable mainly to a 3.3% increase in salaries from ￦2,621 billion in 2023 to ￦2,707 billion in 2024 and a 100.0% increase in share-based payments from ￦70 billion in 2023 to ￦140 billion in 2024, which was enhanced by an 11.2% increase in termination benefits from ￦276 billion in 2023 to ￦307 billion in 2024. The increase in salaries paid was mainly due to general increases in wages paid to the employees of Kookmin Bank, KB Kookmin Card and KB Capital, while the increase in share-based payments mainly reflected increases in stock grants provided to employees of Kookmin Bank and KB Securities. The increase in termination benefits was mainly due to increases in the number of employees participating in our early retirement programs and the amount of termination benefits granted per employee. The increase in depreciation and amortization expenses was mainly due to increases in the depreciation of our right-of-use buildings and amortization of our software assets. The increase in other general and administrative expenses was mainly attributable to a 6.9% increase in taxes and dues paid from ￦304 billion in 2023 to ￦325 billion in 2024 and a 7.3% increase in service fees paid from ￦233 billion in 2023 to ￦250 billion in 2024. Net Other Operating Expenses The following table shows, for the periods indicated, the components of our net other operating expenses: Year Ended December 31, Percentage Change 2023 2024 2025 2024/2023 2025/2024 (in billions of Won) (%) Other operating income ￦ 7,651 ￦ 7,586 ￦ 8,001 (0.8 ) 5.5 Other operating expenses (10,364 ) (9,459 ) (10,884 ) (8.7 ) 15.1 Net other operating expenses ￦ (2,713 ) ￦ (1,873 ) ￦ (2,883 ) (31.0 ) 53.9 Comparison of 2025 to 2024 Our net other operating expenses increased 53.9% from ￦1,873 billion in 2024 to ￦2,883 billion in 2025, due to a 15.1% increase in other operating expenses from ￦9,459 billion in 2024 to ￦10,884 billion in 2025, which was partially offset by a 5.5% increase in other operating income from ￦7,586 billion in 2024 to ￦8,001 billion in 2025. 122 Table of Contents Other operating expenses include principally losses on foreign exchange transactions, losses on hedge accounting, losses on financial assets at amortized cost, losses on securities at fair value through other comprehensive income, depreciation expenses of operating lease assets, deposit insurance fees, credit guarantee fund fees and miscellaneous other operating expenses. The 15.1% increase in other operating expenses was mainly the result of a 17.5% increase in losses on foreign exchange transactions from ￦5,375 billion in 2024 to ￦6,318 billion in 2025, which was enhanced by a nearly five-fold increase in losses on financial assets at amortized cost from ￦115 billion in 2024 to ￦567 billion in 2025. The increase in losses on foreign exchange transactions, which was primarily due to an overall increase in the volume of our foreign exchange transactions, was offset in part by an increase in gains on foreign exchange transactions, which is recorded as part of other operating income. The increase in losses on financial assets at amortized cost was due to an increase in losses on sale of loans measured at amortized cost, which was in turn due to such losses recorded by KB Kookmin Card and Kookmin Bank. Other operating income includes principally gains on foreign exchange transactions, gains on hedge accounting, gains on financial assets at amortized cost, gains on securities at fair value through other comprehensive income, dividend income and miscellaneous other operating income. The 5.5% increase in other operating income was primarily attributable to a 4.1% increase in gains on foreign exchange transactions from ￦6,070 billion in 2024 to ￦6,317 billion in 2025, a 23.3% increase in miscellaneous other operating income from ￦673 billion in 2024 to ￦830 billion in 2025 and an 87.0% increase in gains on securities at fair value through other comprehensive income from ￦138 billion in 2024 to ￦258 billion in 2025. The effects of such increases were offset in part by a 44.3% decrease in gains on hedge accounting from ￦481 billion in 2024 to ￦268 billion in 2025. The increase in gains on foreign exchange transactions, which was mainly due to an overall increase in the volume of our foreign exchange transactions, was more than offset by an increase in losses on foreign exchange transactions, which is recorded as part of other operating expenses, as discussed above. On a net basis, our net gains (losses) on foreign exchange transactions changed from net gains of ￦695 billion in 2024 to net losses of ￦1 billion in 2025. The increase in miscellaneous other operating income was mainly due to increases in gains on sales of rental assets of KB Capital and miscellaneous other operating income of KB Data Systems. The increase in gains on securities at fair value through other comprehensive income was mainly due to increases in gains on the disposal of such securities of KB Insurance, Kookmin Bank and KB Securities. The decrease in gains on hedge accounting was mainly due to decreases in gains on other fair value hedges of KB Life Insurance and KB Insurance, and was offset in part by a decrease in losses on hedge accounting, which is recorded as part of other operating expenses. Comparison of 2024 to 2023 Our net other operating expenses decreased 31.0% from ￦2,713 billion in 2023 to ￦1,873 billion in 2024, due to an 8.7% decrease in other operating expenses from ￦10,364 billion in 2023 to ￦9,459 billion in 2024, which was slightly offset by a 0.8% decrease in other operating income from ￦7,651 billion in 2023 to ￦7,586 billion in 2024. The 8.7% decrease in other operating expenses was mainly the result of a 12.3% decrease in losses on foreign exchange transactions from ￦6,130 billion in 2023 to ￦5,375 billion in 2024, which was enhanced by a 12.0% decrease in miscellaneous other operating expenses from ￦1,870 billion in 2023 to ￦1,646 billion in 2024. The decrease in losses on foreign exchange transactions, which was primarily due to an overall decrease in the volume of our foreign exchange transactions, was offset in large part by a decrease in gains on foreign exchange transactions, which is recorded as part of other operating income. The decrease in miscellaneous other operating expenses was mainly due to a decrease in expenses relating to membership points at KB Kookmin Card. The 0.8% decrease in other operating income was primarily attributable to a 6.3% decrease in gains on foreign exchange transactions from ￦6,481 billion in 2023 to ￦6,070 billion in 2024, the effect of which was largely offset by a 33.2% increase in gains on hedge accounting from ￦361 billion in 2023 to ￦481 billion in 123 Table of Contents 2024, a 13.3% increase in miscellaneous other operating income from ￦594 billion in 2023 to ￦673 billion in 2024 and a 106.0% increase in gains related to financial instruments at fair value through other comprehensive income from ￦67 billion in 2023 to ￦138 billion in 2024. The decrease in gains on foreign exchange transactions, which was mainly the result of an overall decrease in the volume of foreign exchange transactions conducted by us, was more than offset by a decrease in losses on foreign exchange transactions, which is recorded as part of other operating expenses, as discussed above. The increase in gains on hedge accounting, which was mainly the result of higher interest rate and exchange rate volatility in 2024 compared to 2023, was offset in part by an increase in losses on hedge accounting, which is recorded as part of other operating expenses. The increase in gains related to financial instruments at fair value through other comprehensive income was primarily due to an increase in gains on the disposal of securities at fair value through other comprehensive income, which was in turn due to an increase in gains on Kookmin Bank’s sales of foreign currency-denominated bonds. For further information regarding our net other operating expenses, see Note 31 of the notes to our consolidated financial statements included elsewhere in this annual report. Net Non-operating Expenses The following table shows, for the periods indicated, the components of our net non-operating expenses: Year Ended December 31, Percentage Change 2023 2024 2025 2024/2023 2025/2024 (in billions of Won) (%) Share of profit (loss) of associates and joint ventures ￦ 33 ￦(17) ￦ 27 N/M (1) N/M (1) Net other non-operating expenses (298 ) (1,043 ) (361 ) 250.0 (65.4 ) Net non-operating expenses ￦ (265 ) ￦ (1,060 ) ￦ (335 ) 300.0 (68.4 ) (1) “N/M” means not meaningful. Comparison of 2025 to 2024 Our net non-operating expenses decreased 68.4% from ￦1,060 billion in 2024 to ￦335 billion in 2025, as a 65.4% decrease in net other non-operating expenses from ￦1,043 billion in 2024 to ￦361 billion in 2025 was slightly enhanced by a change in share of profit (loss) of associates and joint ventures from a net loss of ￦17 billion in 2024 to a net profit of ￦27 billion in 2025. The 65.4% decrease in net other non-operating expenses was attributable to a more than three-fold increase in other non-operating income from ￦184 billion in 2024 to ￦682 billion in 2025 and, to a lesser extent, a 14.9% decrease in other non-operating expenses from ￦1,227 billion in 2024 to ￦1,044 billion in 2025. The increase in other non-operating income was primarily attributable to a ten-fold increase in gains on disposal of property and equipment from ￦30 billion in 2024 to ￦304 billion in 2025, which mainly reflected an increase in gains on the sale of investment properties by our consolidated funds. The decrease in other non-operating expenses was mainly due to a 36.0% decrease in miscellaneous other non-operating expenses from ￦1,003 billion in 2024 to ￦642 billion in 2025, which was mainly attributable to the one-time payment of voluntary compensation made by Kookmin Bank in connection with its past sales of certain equity-linked securities products tied to the performance of the Hang Seng China Enterprise Index during 2024 (see “Item 8A. Consolidated Statements and Other Financial Information—Legal Proceedings.”), which was not repeated in 2025. The effect of such decrease was offset in part by a more than three-fold increase in impairment losses on goodwill from ￦60 billion in 2024 to ￦224 billion in 2025, which was mainly due to an increase in impairment losses on goodwill of KB PRASAC Bank Plc. 124 Table of Contents The change in share of profit (loss) of associates and joint ventures from a net loss to a net profit was primarily due to an increase in profit of equity-method investees of Kookmin Bank. Comparison of 2024 to 2023 Our net non-operating expenses increased four-fold from ￦265 billion in 2023 to ￦1,060 billion in 2024, as a more than three-fold increase in net other non-operating expenses from ￦298 billion in 2023 to ￦1,043 billion in 2024 was slightly enhanced by a change in share of profit (loss) of associates and joint ventures from a net profit of ￦33 billion in 2023 to a net loss of ￦17 billion in 2024. The more than three-fold increase in net other non-operating expenses was attributable to a 169.7% increase in other non-operating expenses from ￦455 billion in 2023 to ￦1,227 billion in 2024, which was slightly offset by a 17.2% increase in other non-operating income from ￦157 billion in 2023 to ￦184 billion in 2024. The increase in other non-operating expenses was mainly due to a more than three-fold increase in miscellaneous other non-operating expenses from ￦319 billion in 2023 to ￦1,003 billion in 2024, which was mainly attributable to the payment of voluntary compensation made by Kookmin Bank in connection with its past sales of certain equity-linked securities products tied to the performance of the Hang Seng China Enterprise Index during 2024 (see “Item 8A. Consolidated Statements and Other Financial Information—Legal Proceedings.”). The increase in other non-operating income was primarily attributable to a significant increase in gains on disposal of property and equipment from ￦2 billion in 2023 to ￦30 billion in 2024, which mainly reflected the gains from the sale of certain investment properties held by Kookmin Bank in 2024. The change in share of profit (loss) of associates and joint ventures from a net profit to a net loss was primarily due to losses on valuation using the equity-method of certain of our investees that are considered to be our consolidated affiliates including, in particular, the affiliates of KB Securities. Income Tax Expense Our income tax expense is calculated by adding or subtracting changes in deferred income tax liabilities and assets to income tax amounts payable for the period. Deferred income tax assets are recognized for deductible temporary differences, unused tax losses and unused tax credits, while deferred income tax liabilities are recognized for taxable temporary differences. Temporary differences are those between the carrying values of assets and liabilities for financial reporting purposes and their respective tax bases. Deferred income tax assets, including unused tax losses and credits, are recognized only to the extent it is probable that sufficient taxable profit will be available against which such deferred income tax assets can be utilized. Comparison of 2025 to 2024 Income tax expense increased 19.7% from ￦1,957 billion in 2024 to ￦2,342 billion in 2025, primarily due to a 17.2% increase in profit before income tax from ￦6,985 billion in 2024 to ￦8,183 billion in 2025. Such increase was enhanced by a change in temporary differences for which no deferred tax is recognized, from a reduction in tax expenses of ￦76 billion in 2024 to an increase in tax expenses of ￦97 billion in 2025, as well as an additional ￦85 billion of tax expenses recognized in 2025 due to an increase in corporate income tax rates following an amendment to the tax laws at the end of 2025. The effects of such increases were offset in part by a 68.1% decrease in changes in recognition and measurement of deferred tax from ￦232 billion in 2024 to ￦74 billion in 2025. Our effective tax rate was 28.6% in 2025 compared to 28.0% in 2024. Comparison of 2024 to 2023 Income tax expense increased 22.8% from ￦1,594 billion in 2023 to ￦1,957 billion in 2024, primarily due to a 14.1% increase in profit before income tax from ￦6,120 billion in 2023 to ￦6,985 billion in 2024, which was enhanced by a 241.2% increase in changes in recognition and measurement of deferred tax from ￦68 billion 125 Table of Contents in 2023 to ￦232 billion in 2024. Such effects were offset in part by a significant increase in net reductions in tax expenses due to temporary differences for which no deferred tax is recognized from ￦4 billion in 2023 to ￦76 billion in 2024. Our effective tax rate was 28.0% in 2024 compared to 26.0% in 2023. See Note 34 of the notes to our consolidated financial statements included elsewhere in this annual report. Profit for the Year Comparison of 2025 to 2024 As a result of the factors described above, our profit for the year increased 16.1% from ￦5,029 billion in 2024 to ￦5,841 billion in 2025. Comparison of 2024 to 2023 As a result of the factors described above, our profit for the year increased 11.1% from ￦4,526 billion in 2023 to ￦5,029 billion in 2024. Results by Principal Business Segment We compile and analyze financial information for our business segments based upon segment information used by our management for the purposes of resource allocation and performance evaluation. We are organized into seven major business segments: retail banking operations, corporate banking operations, other banking operations, credit card operations, securities operations, life insurance operations and non-life insurance operations. The following table shows, for the periods indicated, our results of operations by segment: Profit (Loss)(1) for the Year Ended December 31, Total Net Operating Revenues (Expenses)(2) for the Year Ended December 31, 2023 2024 2025 2023 2024 2025 (in billions of Won) Retail banking operations ￦ 1,766 ￦ 1,460 ￦ 1,445 ￦ 4,444 ￦ 4,165 ￦ 3,973 Corporate banking operations 1,587 1,896 1,540 5,641 5,282 4,689 Other banking operations (202 ) (205 ) 839 31 637 2,395 Credit card operations 351 391 329 2,026 2,108 1,911 Securities operations 383 585 677 1,667 1,772 2,202 Life insurance operations 85 164 139 191 366 343 Non-life insurance operations 714 840 779 1,120 1,448 1,245 Other 305 473 721 1,059 1,250 1,188 Total(3) ￦ 4,987 ￦ 5,605 ￦ 6,469 ￦ 16,179 ￦ 17,028 ￦ 17,945 (1) After deduction of income tax allocated to each segment. See Note 5 of the notes to our consolidated financial statements included elsewhere in this annual report. (2) Represents net operating revenue (expenses) from external customers. See Note 5 of the notes to our consolidated financial statements included elsewhere in this annual report. (3) Prior to adjustments for consolidation, inter-segment transactions and certain differences in classification under our management reporting system. Our other banking operations, which include treasury activities, provide funding to our retail banking operations and corporate banking operations and receive funds procured through the financing activities of such segments, such as deposit-taking activities. When our retail banking operations or corporate banking operations engage in an investing activity, such as lending, the relevant amount is recognized as an inter-segment borrowing from the other banking operations. When our retail banking operations or corporate banking operations engage in 126 Table of Contents a financing activity, such as deposit-taking, the relevant amount is recognized as an inter-segment lending to the other banking operations (or as a reduction in inter-segment borrowings from the other banking operations). Generally, for our retail banking operations, the amounts procured from financing activities are greater than the amounts used in investing activities, whereas for our corporate banking operations, the amounts used in investing activities are greater than the amounts procured from financing activities. The cost of borrowing from the other banking operations is calculated by multiplying the average balance of the amounts used in investing activities by the applicable internal funding rate on such inter-segment borrowings, whereas the income from lending to the other banking operations is calculated by multiplying the average balance of the amounts procured from financing activities by the applicable internal funding rate on such inter-segment lendings. The applicable internal funding rates on inter-segment borrowings tend to be generally higher than the applicable internal funding rates on inter-segment lendings, primarily due to the difference in the maturity structure of interest rates on the amounts used in investing activities and the amounts procured from financing activities. The cost of borrowing from the other banking operations is offset by the income from lending to the other banking operations, and the difference is recorded as expenses related to inter-segment borrowings, within net other operating expenses, for our retail banking operations and corporate banking operations, while a corresponding amount is recorded as income from inter-segment lending, within net other operating income, for our other banking operations. Retail Banking Operations This segment consists of retail banking services provided by Kookmin Bank. The following table shows, for the periods indicated, our income statement data for this segment: Year Ended December 31, Percentage Change 2023 2024 2025 2024/2023 2025/2024 (in billions of Won) (%) Income statement data Interest income ￦ 7,723 ￦ 7,761 ￦ 7,506 0.5 (3.3 ) Interest expense (4,326 ) (4,441 ) (3,880 ) 2.7 (12.6 ) Net fee and commission income 252 242 333 (4.0 ) 37.6 Net other operating income 795 604 14 (24.0 ) (97.7 ) General and administrative expenses (1,952 ) (1,985 ) (1,860 ) 1.7 (6.3 ) Provision for credit losses (92 ) (197 ) (202 ) 114.1 2.5 Profit before income tax expense 2,399 1,984 1,911 (17.3 ) (3.7 ) Income tax expense (633 ) (524 ) (465 ) (17.2 ) (11.3 ) Profit for the year ￦ 1,766 ￦ 1,460 ￦ 1,445 (17.3 ) (1.0 ) Comparison of 2025 to 2024 Our profit before income tax expense for this segment decreased 3.7% from ￦1,984 billion in 2024 to ￦1,911 billion in 2025. Interest income from our retail banking operations decreased 3.3% from ￦7,761 billion in 2024 to ￦7,506 billion in 2025, which was mainly due to decreases in the average yields on other consumer loans, mortgage loans and home equity loans, the effects of which were offset in part by an increase in the average volume of mortgage loans. Interest expense for this segment decreased 12.6% from ￦4,441 billion in 2024 to ￦3,880 billion in 2025. Our largest and most important funding source is deposits from retail customers, which represent more than half of our total deposits. The decrease in interest expense for this segment was mainly due to a decrease in the average cost of time deposits held by retail customers, which was offset in part by an increase in the average volume of such deposits. 127 Table of Contents Net fee and commission income attributable to this segment increased 37.6% from ￦242 billion in 2024 to ￦333 billion in 2025, mainly due to increases in trust fees received for specified money trusts, securities agency fees received and bancassurance fees received. Net other operating income attributable to this segment decreased 97.7% from ￦604 billion in 2024 to ￦14 billion in 2025, which was primarily due to a significant decrease in gains related to inter-segment borrowings. General and administrative expenses attributable to this segment decreased 6.3% from ￦1,985 billion in 2024 to ￦1,860 billion in 2025, primarily due to a decrease in common general and administrative expenses allocated to this segment, which was partially offset by an increase in expenses related to employee benefits. Provision for credit losses increased 2.5% from ￦197 billion in 2024 to ￦202 billion in 2025, mainly due to an increase in provisions for credit losses of retail loans. Such increase mainly reflected our provisioning strategy pursuant to which we preemptively accounted for a potential increase in credit losses that could result from a deterioration in the overall asset quality of our loan portfolios, mainly due to an increasing likelihood of default by borrowers in light of the general slowdown in the economy in Korea. Comparison of 2024 to 2023 Our profit before income tax expense for this segment decreased 17.3% from ￦2,399 billion in 2023 to ￦1,984 billion in 2024. Interest income from our retail banking operations increased 0.5% from ￦7,723 billion in 2023 to ￦7,761 billion in 2024, which was mainly due to increases in the average volumes of mortgage loans and home equity loans, the effects of which were offset in part by a decrease in the average yields on such loans. Interest expense for this segment increased 2.7% from ￦4,326 billion in 2023 to ￦4,441 billion in 2024. Our largest and most important funding source is deposits from retail customers, which represent more than half of our total deposits. The increase in interest expense for this segment was mainly due to an increase in the average volume of time deposits held by retail customers, which was offset in significant part by a decrease in the average cost of such deposits. Net fee and commission income attributable to this segment decreased 4.0% from ￦252 billion in 2023 to ￦242 billion in 2024, mainly due to a decrease in trust fees received for specified money trusts, which was offset in large part by an increase in bancassurance fees received. Net other operating income attributable to this segment decreased 24.0% from ￦795 billion in 2023 to ￦604 billion in 2024, which was primarily due to a decrease in gains related to inter-segment borrowings. General and administrative expenses attributable to this segment increased 1.7% from ￦1,952 billion in 2023 to ￦1,985 billion in 2024, primarily due to an increase in depreciation and amortization expenses, which was offset in part by a decrease in employee-related expenses. Provision for credit losses increased 114.1% from ￦92 billion in 2023 to ￦197 billion in 2024, mainly due to an increase in provisions for credit losses of retail loans. Such increase mainly reflected our provisioning strategy pursuant to which we preemptively accounted for a potential increase in credit losses that could result from a deterioration in the overall asset quality of our loan portfolios, mainly due to an increasing likelihood of default by borrowers in light of the general slowdown in the economy in Korea. 128 Table of Contents Corporate Banking Operations This segment consists of corporate banking services provided by Kookmin Bank. The following table shows, for the periods indicated, our income statement data for this segment: Year Ended December 31, Percentage Change 2023 2024 2025 2024/2023 2025/2024 (in billions of Won) (%) Income statement data Interest income ￦ 11,688 ￦ 12,101 ￦ 11,132 3.5 (8.0 ) Interest expense (6,042 ) (6,335 ) (5,292 ) 4.8 (16.5 ) Net fee and commission income 427 410 457 (4.0 ) 11.5 Net gains (losses) on financial instruments at fair value through profit or loss (6 ) 24 (1 ) N/ M (1) N/ M (1) Net other operating expenses (309 ) (827 ) (1,460 ) 167.6 76.5 General and administrative expenses (1,959 ) (2,005 ) (1,941 ) 2.3 (3.2 ) Provision for credit losses (1,563 ) (482 ) (820 ) (69.2 ) 70.1 Net other non-operating expenses (15 ) (62 ) (7 ) 313.3 (88.7 ) Profit before income tax expense 2,221 2,824 2,068 27.1 (26.8 ) Income tax expense (634 ) (928 ) (528 ) 46.4 (43.1 ) Profit for the year ￦ 1,587 ￦ 1,896 ￦ 1,540 19.5 (18.8 ) (1) “N/M” means not meaningful. Comparison of 2025 to 2024 Our profit before income tax expense for this segment decreased 26.8% from ￦2,824 billion in 2024 to ￦2,068 billion in 2025. Interest income from our corporate banking operations decreased 8.0% from ￦12,101 billion in 2024 to ￦11,132 billion in 2025. This decrease was primarily due to a decrease in the average yield on corporate loans of Kookmin Bank, which was offset in part by an increase in the average volume of such loans. Interest expense for this segment decreased 16.5% from ￦6,335 billion in 2024 to ￦5,292 billion in 2025. This decrease was principally due to a decrease in the average cost of deposits held by corporate customers of Kookmin Bank, which was offset in part by an increase in the average volume of such deposits. Net fee and commission income attributable to this segment increased 11.5% from ￦410 billion in 2024 to ￦457 billion in 2025, primarily due to a decrease in participation fees paid to participate in transactions originated by other financial institutions, the effect of which was enhanced by increases in wire transfer fees received and trust fees received. Net gains (losses) on financial instruments at fair value through profit or loss attributable to this segment changed from net gains of ￦24 billion in 2024 to net losses of ￦1 billion in 2025, principally due to a decrease in net gains on financial instruments at fair value through profit or loss held by Kookmin Bank’s overseas subsidiaries and a decrease in gains related to fair value hedges, the effects of which were offset in part by an increase in the distribution income received on certain investment funds. Net other operating expenses attributable to this segment increased 76.5%from ￦827 billion in 2024 to ￦1,460 billion in 2025, mainly as a result of an increase in expenses related to inter-segment borrowings. General and administrative expenses attributable to this segment decreased 3.2% from ￦2,005 billion in 2024 to ￦1,941 billion in 2025, principally due to a decrease in common administrative expenses allocated to 129 Table of Contents this segment, which was enhanced by a decrease in employee-related expenses and partially offset by increases in the general and administrative expenses of KB PRASAC Bank Plc. and Bank Bukopin, Kookmin Bank’s overseas subsidiaries. Provision for credit losses attributable to this segment increased 70.1% from ￦482 billion in 2024 to ￦820 billion in 2025, mainly due to increases in provisions for credit losses of loans and payment guarantees to Kookmin Bank’s corporate customers. Net other non-operating expenses attributable to this segment decreased 88.7% from ￦62 billion in 2024 to ￦7 billion in 2025, primarily due to an increase in miscellaneous other non-operating expenses of Bank Bukopin in 2024, which did not recur in 2025. Comparison of 2024 to 2023 Our profit before income tax expense for this segment increased 27.1% from ￦2,221 billion in 2023 to ￦2,824 billion in 2024. Interest income from our corporate banking operations increased 3.5% from ￦11,688 billion in 2023 to ￦12,101 billion in 2024. This increase was primarily due to an increase in the average volume of corporate loans of Kookmin Bank, which was offset in significant part by a decrease in the average yields on such loans. Interest expense for this segment increased 4.8% from ￦6,042 billion in 2023 to ￦6,335 billion in 2024. This increase was principally due to an increase in the average volume of deposits held by corporate customers of Kookmin Bank, which was offset in part by a decrease in the average costs of such deposits. Net fee and commission income attributable to this segment decreased 4.0% from ￦427 billion in 2023 to ￦410 billion in 2024, primarily due to a decrease in foreign currency transaction fees received and a decrease in fees and commissions received from Kookmin Bank’s overseas subsidiaries, the effects of which were offset in part by increases in retirement pension management fees, bancassurance commissions and beneficiary certificate sales commission fees received. Net gains (losses) on financial instruments at fair value through profit or loss attributable to this segment changed from net losses of ￦6 billion in 2023 to net gains of ￦24 billion in 2024, principally due to an increase in net gains on financial instruments at fair value through profit or loss held by Kookmin Bank’s overseas subsidiaries, which was enhanced by an increase in gains related to fair value hedges. Net other operating expenses attributable to this segment increased 167.6% from ￦309 billion in 2023 to ￦827 billion in 2024, mainly as a result of an increase in expenses related to inter-segment borrowings. General and administrative expenses attributable to this segment increased 2.3% from ￦1,959 billion in 2023 to ￦2,005 billion in 2024, principally due to an increase in employee-related expenses, which was enhanced by increases in the general and administrative expenses of PRASAC and Bank Bukopin, Kookmin Bank’s overseas subsidiaries. Provision for credit losses attributable to this segment decreased 69.2% from ￦1,563 billion in 2023 to ￦482 billion in 2024, mainly due to a decrease in provisions for credit losses of loans and payment guarantees to Kookmin Bank’s corporate customers. Net other non-operating expenses attributable to this segment increased 313.3% from ￦15 billion in 2023 to ￦62 billion in 2024, primarily due to an increase in miscellaneous other non-operating expenses of Bank Bukopin. 130 Table of Contents Other Banking Operations This segment primarily consists of Kookmin Bank’s banking operations other than retail and corporate banking operations, including treasury activities and Kookmin Bank’s “back office” administrative operations. The following table shows, for the periods indicated, our income statement data for this segment: Year Ended December 31, Percentage Change 2023 2024 2025 2024/2023 2025/2024 (in billions of Won) (%) Income statement data Interest income ￦ 2,936 ￦ 3,349 ￦ 3,224 14.1 (3.7 ) Interest expense (2,109 ) (2,211 ) (2,033 ) 4.8 (8.1 ) Net fee and commission income 489 461 414 (5.7 ) (10.2 ) Net gains on financial instruments at fair value through profit or loss 766 744 934 (2.9 ) 25.5 Net other operating income (expenses) (1,826 ) (1,168 ) 55 (36.0 ) N/M (1) General and administrative expenses (610 ) (645 ) (848 ) 5.7 31.5 Reversal of (Provision for) credit losses 48 (1 ) (11 ) N/M (1) N/M (1) Share of profit of associates and joint ventures — 7 76 N/A (2) N/M (1) Net other non-operating expenses (84 ) (899 ) (474 ) 970.2 (47.3 ) Profit (loss) before income tax expense (390 ) (362 ) 1,336 (7.2 ) N/M (1) Income tax benefit (expense) 187 157 (497 ) (16.0 ) N/M (1) Profit (loss) for the year ￦ (202 ) ￦ (205 ) ￦ 839 1.5 N/M (1) (1) “N/M” means not meaningful. (2) “N/A” means not applicable. Comparison of 2025 to 2024 Our profit (loss) before income tax expense for this segment changed from a loss of ￦362 billion in 2024 to a profit of ￦1,336 billion in 2025. Interest income from our other banking operations decreased 3.7% from ￦3,349 billion in 2024 to ￦3,224 billion in 2025, mainly due to decreases in the average yields on other banking loans and debt securities in this segment, which was enhanced by a decrease in the average volume of banking loans and offset in part by an increase in the average volume of debt securities. Interest expense for this segment decreased 8.1% from ￦2,211 billion in 2024 to ￦2,033 billion in 2025, primarily due to decreases in the average costs of debentures and other liabilities in this segment, the effects of which were offset in part by increases in the average volumes of such debentures and liabilities. Net fee and commission income attributable to this segment decreased 10.2% from ￦461 billion in 2024 to ￦414 billion in 2025, mainly due to decreases in participation fees paid to participate in transactions originated by other financial institutions and other investment finance fees paid. Net gains on financial instruments at fair value through profit or loss attributable to this segment increased 25.5% from ￦744 billion in 2024 to ￦934 billion in 2025, principally as a result of an increase in net gain on derivatives held-for-trading of Kookmin Bank, the effect of which was mostly offset by a decrease in net gain on the valuation of securities held-for-trading of Kookmin Bank. Net other operating income (expenses) attributable to this segment changed from net expenses of ￦1,168 billion in 2024 to net income of ￦55 billion in 2025, mainly as a result of an increase in gains related to inter-segment borrowings. 131 Table of Contents General and administrative expenses attributable to this segment increased 31.5% from ￦645 billion in 2024 to ￦848 billion in 2025, primarily due to an increase in administrative expenses allocated to this segment, which was offset in part by decreases in write-offs and expenses related to employees. Provision for credit losses attributable to this segment increased eleven-fold from ￦1 billion in 2024 to ￦11 billion in 2025, due mainly to an increase in provisions for credit losses of other financial liabilities and an increase in consolidation adjustments relating to foreign currency guarantees and provisions for foreign currency loan losses. Share of profit of associates and joint ventures attributable to this segment increased more than ten-fold from ￦7 billion in 2024 to ￦76 billion in 2025, principally as a result of an increase in gains on equity-method investees of Kookmin Bank. Net other non-operating expenses attributable to this segment decreased 47.3% from ￦899 billion in 2024 to ￦474 billion in 2025, primarily due to a decrease in impairment losses recognized by equity-method investees of Kookmin Bank and an increase in gains on disposals of property, plant and equipment and assets held for sale. Comparison of 2024 to 2023 Our loss before income tax expense for this segment decreased 7.2% from ￦390 billion in 2023 to ￦362 billion in 2024. Interest income from our other banking operations increased 14.1% from ￦2,936 billion in 2023 to ￦3,349 billion in 2024, mainly due to an increase in the average volume of debt securities in this segment, which was enhanced by an increase in the average yield on such securities. Interest expense for this segment increased 4.8% from ￦2,109 billion in 2023 to ￦2,211 billion in 2024, primarily due to increases in the average volumes of borrowings and debentures in this segment, which were enhanced by increases in the average costs of such borrowings and debentures. Net fee and commission income attributable to this segment decreased 5.7% from ￦489 billion in 2023 to ￦461 billion in 2024, mainly due to decreases in agent activity fees and foreign exchange transaction fees received, the effects of which were offset in part by an increase in asset securitization fees received. Net gains on financial instruments at fair value through profit or loss attributable to this segment decreased 2.9% from ￦766 billion in 2023 to ￦744 billion in 2024, principally as a result of a decrease in net gain on the valuation of securities held-for-trading of Kookmin Bank. The effect of such decrease was offset in part by an increase in net gain on derivatives held-for-trading of Kookmin Bank. Net other operating expenses attributable to this segment decreased 36.0% from ￦1,826 billion in 2023 to ￦1,168 billion in 2024, mainly as a result of a decrease in funding costs, which was enhanced by a decrease in net losses on foreign exchange valuation. General and administrative expenses attributable to this segment increased 5.7% from ￦610 billion in 2023 to ￦645 billion in 2024, primarily due to an increase in expenses related to employees as well as an increase in administrative expenses allocated to the trusts and funds in this segment. Reversal of (provision for) credit losses attributable to this segment changed from a reversal of provisions of ￦48 billion in 2023 to provisions of ￦1 billion in 2024, due mainly to an increase in provisions for credit losses of loans in foreign currencies held by one of our consolidated subsidiaries. Share of profit of associates and joint ventures attributable to this segment increased significantly from ￦0 billion in 2023 to ￦7 billion in 2024, principally as a result of a decrease in losses of equity-method investees of Kookmin Bank. 132 Table of Contents Net other non-operating expenses attributable to this segment increased more than ten-fold from ￦84 billion in 2023 to ￦899 billion in 2024, primarily due to the payment of voluntary compensation made by Kookmin Bank in connection with its past sales of certain equity-linked securities products tied to the performance of the Hang Seng China Enterprise Index during 2024 (see “Item 8A. Consolidated Statements and Other Financial Information—Legal Proceedings.”). Credit Card Operations This segment consists of credit card activities conducted by KB Kookmin Card. The following table shows, for the periods indicated, our income statement data for this segment: Year Ended December 31, Percentage Change 2023 2024 2025 2024/2023 2025/2024 (in billions of Won) (%) Income statement data Interest income ￦ 2,343 ￦ 2,464 ￦ 2,374 5.2 (3.7 ) Interest expense (704 ) (803 ) (781 ) 14.1 (2.7 ) Net fee and commission income 614 770 709 25.4 (7.9 ) Net insurance income 10 8 7 (20.0 ) (12.5 ) Net gains on financial instruments at fair value through profit or loss 7 12 11 71.4 (8.3 ) Net other operating expenses (391 ) (403 ) (509 ) 3.1 26.3 General and administrative expenses (625 ) (641 ) (606 ) 2.6 (5.5 ) Provision for credit losses (827 ) (893 ) (765 ) 8.0 (14.3 ) Share of profit of associates and joint ventures 1 1 1 0.0 0.0 Net other non-operating income (expenses) 44 10 (8 ) (77.3 ) N/M (1) Profit before income tax expense 473 525 432 11.0 (17.7 ) Income tax expense (121 ) (134 ) (103 ) 10.7 (23.1 ) Profit for the year ￦ 351 ￦ 391 ￦ 329 11.4 (15.9 ) (1) “N/M” means not meaningful. Comparison of 2025 to 2024 Our profit before income tax expense for this segment decreased 17.7% from ￦525 billion in 2024 to ￦432 billion in 2025. Interest income from our credit card operations decreased 3.7% from ￦2,464 billion in 2024 to ￦2,374 billion in 2025. This decrease was primarily due to a decrease in the average yield on credit card receivables, which was enhanced by a decrease in the average volume of such receivables. Interest expense for this segment decreased 2.7% from ￦803 billion in 2024 to ￦781 billion in 2025. This decrease was primarily due to decreases in the average costs of borrowings and debentures, the effects of which were enhanced by a decrease in the average volume of borrowings and offset in part by an increase in the average balance of debentures. Net fee and commission income attributable to this segment decreased 7.9% from ￦770 billion in 2024 to ￦709 billion in 2025, mainly due to a decrease in commissions received related to payment gateways, which was offset in part by an increase in credit card annual fees received and a decrease in credit card commissions paid in Korean Won. Net insurance income attributable to this segment decreased 12.5% from ￦8 billion in 2024 to ￦7 billion in 2025, primarily due to a decrease in insurance income received, which was in turn primarily due to a decrease 133 Table of Contents in the number of customers using certain services for which KB Kookmin Card stopped accepting new customers. The effect of such decrease was offset in part by a corresponding decrease in insurance expenses paid. Net gains on financial instruments at fair value through profit or loss attributable to this segment decreased 8.3% from ￦12 billion in 2024 to ￦11 billion in 2025, primarily due to a decrease in gains from sales of investment trust beneficiary certificates, which was mostly offset by an increase in gains on the valuation of other securities. Net other operating expenses attributable to this segment increased 26.3% from ￦403 billion in 2024 to ￦509 billion in 2025, primarily due to an increase in losses on disposal of loans measured at amortized cost, the effect of which was offset in part by an increase in gains on disposal of loans measured at amortized cost and a decrease in expenses related to membership points. General and administrative expenses attributable to this segment decreased 5.5% from ￦641 billion in 2024 to ￦606 billion in 2025, mainly due to a decrease in expenses related to employees. Provision for credit losses attributable to this segment decreased 14.3% from ￦893 billion in 2024 to ￦765 billion in 2025, mainly due to a decrease in provisions for credit losses of credit card receivables, the effect of which was enhanced by a decrease in provisions for credit losses of foreign currency loans and offset in part by an increase in provisions for credit losses of installment loans. Share of profit of associates and joint ventures attributable to this segment remained stable at ￦1 billion in 2024 and 2025. Net other non-operating income (expense) attributable to this segment changed from net income of ￦10 billion in 2024 to net expenses of ￦8 billion in 2025, primarily due to the effect of damages awarded to KB Kookmin Card in connection with a lawsuit relating to customer data theft in 2024, which did not recur in 2025. Comparison of 2024 to 2023 Our profit before income tax expense for this segment increased 11.0% from ￦473 billion in 2023 to ￦525 billion in 2024. Interest income from our credit card operations increased 5.2% from ￦2,343 billion in 2023 to ￦2,464 billion in 2024. This increase was primarily due to increases in both the average yields on, and the average volume of, credit card receivables. Interest expense for this segment increased 14.1% from ￦704 billion in 2023 to ￦803 billion in 2024. This increase was primarily due to an increase in the average cost of debentures, which was enhanced by an increase in the average balance of debentures. Net fee and commission income attributable to this segment increased 25.4% from ￦614 billion in 2023 to ￦770 billion in 2024, mainly due to a decrease in credit card commissions paid, the effect of which was enhanced by increases in commissions received related to payment gateways and debit card processing fees received. Net insurance income attributable to this segment decreased 20.0% from ￦10 billion in 2023 to ￦8 billion in 2024, primarily due to a decrease in insurance income received, which was in turn due to a decrease in the number of customers using certain services for which KB Kookmin Card stopped accepting new customers. Net gains on financial instruments at fair value through profit or loss attributable to this segment increased 71.4% from ￦7 billion in 2023 to ￦12 billion in 2024, primarily due an increase in gains on valuations of investment trust beneficiary certificates, which was partially offset by a decrease in gains on the valuation of equity securities. 134 Table of Contents Net other operating expenses attributable to this segment increased 3.1% from ￦391 billion in 2023 to ￦403 billion in 2024, primarily due to an increase in losses on disposal of loans measured at amortized cost and an increase in non-financial operating expenses, which were offset in part by a decrease in expenses related to membership points. General and administrative expenses attributable to this segment increased 2.6% from ￦625 billion in 2023 to ￦641 billion in 2024, mainly due to increases in expenses related to employees and IT related expenses, which were offset in part by a decrease in depreciation and amortization expenses. Provision for credit losses attributable to this segment increased 8.0% from ￦827 billion in 2023 to ￦893 billion in 2024, mainly due to increases in provisions for credit losses of foreign currency loans and installment loans, the effects of which were offset in part by an increase in reversal of provisions for unused loan commitments. Share of profit of associates and joint ventures attributable to this segment remained stable at ￦1 billion in 2023 and 2024. Net other non-operating income attributable to this segment decreased 77.3% from ￦44 billion in 2023 to ￦10 billion in 2024, primarily due to a decrease in damages awarded to KB Kookmin Card in connection with a lawsuit relating to customer data theft in 2024, the amount of which was smaller than that received in 2023. Securities Operations This segment consists primarily of securities brokerage, investment banking, securities investment and trading and other capital markets activities conducted by KB Securities, including its predecessor entities. The following table shows, for the periods indicated, our income statement data for this segment: Year Ended December 31, Percentage Change 2023 2024 2025 2024/2023 2025/2024 (in billions of Won) (%) Income statement data Interest income ￦ 1,763 ￦ 1,783 ￦ 1,764 1.1 (1.1 ) Interest expense (1,149 ) (1,179 ) (1,133 ) 2.6 (3.9 ) Net fee and commission income 743 789 951 6.2 20.5 Net gains on financial instruments at fair value through profit or loss 357 267 427 (25.2 ) 59.9 Net other operating income 6 161 59 N/M (1) (63.4 ) General and administrative expenses (903 ) (980 ) (1,070 ) 8.5 9.2 Provision for credit losses (144 ) (67 ) (94 ) (53.5 ) 40.3 Share of profit (loss) of associates and joint ventures 3 (35 ) (8 ) N/M (1) (77.1 ) Net other non-operating income (expenses) (190 ) 3 4 N/M (1) 33.3 Profit before income tax expense 485 741 899 52.8 21.3 Income tax expense (103 ) (156 ) (223 ) 51.5 42.9 Profit for the year ￦ 383 ￦ 585 ￦ 677 52.7 15.7 (1) “N/M” means not meaningful. Comparison of 2025 to 2024 Our profit before income tax expense for this segment increased 21.3% from ￦741 billion in 2024 to ￦899 billion in 2025. 135 Table of Contents Interest income from this segment decreased 1.1% from ￦1,783 billion in 2024 to ￦1,764 billion in 2025, primarily due to a decrease in the average yield on debt securities held by KB Securities, which was offset in part by an increase in the average volume of such securities. Interest expense for this segment decreased 3.9% from ￦1,179 billion in 2024 to ￦1,133 billion in 2025, principally as a result of a decrease in the average cost of interest-bearing liabilities held by KB Securities, which was offset in part by an increase in the average volume of such liabilities. Net fee and commission income attributable to this segment increased 20.5% from ￦789 billion in 2024 to ￦951 billion in 2025, primarily due to an increase in securities brokerage commissions received, resulting from an increase in the volume of activity in the Korean securities trading market in 2025 compared to 2024, the effect of which was offset in part by an increase in other Won-denominated fees paid. Net gains on financial instruments at fair value through profit or loss attributable to this segment increased 59.9% from ￦267 billion in 2024 to ￦427 billion in 2025, principally due to an increase in gains on valuation of derivatives at fair value through profit or loss. Net other operating income attributable to this segment decreased 63.4% from ￦161 billion in 2024 to ￦59 billion in 2025, primarily due to an increase in net losses on foreign currency valuation with respect to foreign currency-denominated assets and liabilities, which was offset in part by an increase in net gains on foreign exchange transactions with respect to such assets and liabilities. General and administrative expenses attributable to this segment increased 9.2% from ￦980 billion in 2024 to ￦1,070 billion in 2025, primarily due to increases in employee expenses, other expenses and depreciation and amortization expenses. Provision for credit losses increased 40.3% from ￦67 billion in 2024 to ￦94 billion in 2025, primarily due to an increase in provisions for credit losses of Won-denominated loans, which was offset in part by decreases in provisions for credit losses of foreign currency-denominated loans and provisions for credit losses of privately placed bonds. Share of loss of associates and joint ventures attributable to this segment decreased 77.1% from ￦35 billion in 2024 to ￦8 billion in 2025, primarily due to a decrease in losses on sales of investments accounted for using the equity method of KB Securities. Net other non-operating income attributable to this segment increased 33.3% from ￦3 billion in 2024 to ￦4 billion in 2025, mainly due to an increase in gains on the disposal of a parcel of land owned by KB Securities, which was mostly offset by an increase in impairment losses on land and buildings owned by KB Securities and an increase in regulatory penalties paid. Comparison of 2024 to 2023 Our profit before income tax expense for this segment increased 52.8% from ￦485 billion in 2023 to ￦741 billion in 2024. Interest income from this segment increased 1.1% from ￦1,763 billion in 2023 to ￦1,783 billion in 2024, primarily due to an increase in the average volume of debt securities held by KB Securities, which was enhanced by an increase in the average yield on such securities. Interest expense for this segment increased 2.6% from ￦1,149 billion in 2023 to ￦1,179 billion in 2024, principally as a result of increases in the average costs of interest-bearing liabilities held by KB Securities, which were enhanced by increases in the average volumes of such liabilities. 136 Table of Contents Net fee and commission income attributable to this segment increased 6.2% from ￦743 billion in 2023 to ￦789 billion in 2024, primarily due to an increase in advisory fees received and a decrease in other miscellaneous fees paid, the effects of which were offset in part by a decrease in operating lease fees received. Net gains on financial instruments at fair value through profit or loss attributable to this segment decreased 25.2% from ￦357 billion in 2023 to ￦267 billion in 2024, principally due to a decrease in net gains on transactions and valuation of derivative-linked securities at fair value through profit or loss. Net other operating income attributable to this segment increased significantly from ￦6 billion in 2023 to ￦161 billion in 2024, primarily due to an increase in net gains on foreign currency valuation with respect to foreign currency-denominated assets and liabilities, mainly as a result of a depreciation in the value of the Korean Won against other currencies, including the U.S. dollar. General and administrative expenses attributable to this segment increased 8.5% from ￦903 billion in 2023 to ￦980 billion in 2024, primarily due to increases in employee benefits, depreciation and amortization and other general and administrative expenses. Provision for credit losses decreased 53.5% from ￦144 billion in 2023 to ￦67 billion in 2024, primarily due to an increase in reversals of provisions for credit losses of Won-denominated loans, the effect of which was offset in part by an increase in provisions for credit losses of foreign currency-denominated loans. Share of profit (loss) of associates and joint ventures attributable to this segment changed from a net profit of ￦3 billion in 2023 to net loss of ￦35 billion in 2024, primarily due to a decrease in gains on valuation of equity-method investees of KB Securities. Net other non-operating income (expenses) attributable to this segment changed from net expenses of ￦190 billion in 2023 to net income of ￦3 billion in 2024, mainly due to an increase in miscellaneous other non-operating income and a decrease in impairment losses on land and buildings owned by KB Securities. Life Insurance Operations This segment consists of the life insurance operations of KB Life Insurance, which was formed in January 2023 through a merger between the Former KB Life Insurance and Prudential Life Insurance. The following table shows, for the periods indicated, our income statement data for this segment: Year Ended December 31, Percentage Change 2023 2024 2025 2024/2023 2025/2024 (in billions of Won) (%) Income statement data Interest income ￦ 582 ￦ 646 ￦ 698 11.0 8.0 Interest expense (789 ) (783 ) (801 ) (0.8 ) 2.3 Net fee and commission income (expense) (8 ) 8 15 N/M (1) 87.5 Net insurance income 447 480 464 7.4 (3.3 ) Net gains on financial instruments at fair value through profit or loss 659 284 1,172 (56.9 ) 312.7 Net other insurance finance expenses (547 ) (381 ) (1,073 ) (30.3 ) 181.6 Net other operating income (expenses) (137 ) 112 (90 ) N/M (1) N/M (1) General and administrative expenses (100 ) (148 ) (171 ) 48.0 15.5 Reversal of (Provision for) credit losses (2 ) 1 (1 ) N/M (1) N/M (1) Net other non-operating income 5 7 14 40.0 100.0 Profit before income tax expense 110 225 227 104.5 0.9 Income tax expense (25 ) (61 ) (88 ) 144.0 44.3 Profit for the year ￦ 85 ￦ 164 ￦ 139 92.9 (15.2 ) 137 Table of Contents (1) “N/M” means not meaningful. (2) “N/A” means not applicable. Comparison of 2025 to 2024 Our profit before income tax expense for this segment increased 0.9% from ￦225 billion in 2024 to ￦227 billion in 2025. Interest income from this segment increased 8.0% from ￦646 billion in 2024 to ￦698 billion in 2025, primarily due to increases in interest on government bonds, corporate bonds and other debentures. Interest expense for this segment increased 2.3% from ￦783 billion in 2024 to ￦801 billion in 2025, principally due to an increase in interest expenses categorized under insurance finance expenses of KB Life Insurance, which was offset in part by a decrease in interest expenses on investment contract liabilities. Net fee and commission income attributable to this segment increased 87.5% from ￦8 billion in 2024 to ￦15 billion in 2025, primarily due to an increase in other miscellaneous fees and commissions received. Net insurance income attributable to this segment decreased 3.3% from ￦480 billion in 2024 to ￦464 billion in 2025, due to an increase in insurance service expenses, which was in turn mainly attributable to increases in incurred claims and recognition of loss components, the effects of which were offset in part by an increase in insurance income, which was in turn mainly attributable to an increase in the amount of contractual service margins recognized as profit. Net gains on financial instruments at fair value through profit or loss attributable to this segment increased more than four-fold from ￦284 billion in 2024 to ￦1,172 billion in 2025, primarily due to increases in gains on valuation of equity securities, gains on valuation of investment trust beneficiary certificates and gains on sales of equity securities. Net other insurance finance expenses attributable to this segment increased more than two-fold from ￦381 billion in 2024 to ￦1,073 billion in 2025, primarily due to an increase in other insurance finance expenses related to the direct insurance contracts of KB Life Insurance, which was offset in part by a decrease in foreign exchange translation losses. Net other operating income (expenses) attributable to this segment changed from net income of ￦112 billion in 2024 to net expenses of ￦90 billion in 2025, principally due to decreases in gains on valuations of foreign currency-denominated assets and liabilities and gains on other fair value hedges, the effects of which were offset in part by a decrease in losses on sales of currency forward contracts. General and administrative expenses attributable to this segment increased 15.5% from ￦148 billion in 2024 to ￦171 billion in 2025, primarily due to increases in expenses related to employees and depreciation and amortization expenses. Reversal of (provision for) credit losses attributable to this segment changed from reversal of provisions of ￦1 billion in 2024 to provisions of ￦1 billion in 2025, primarily due to an increase in provisions for credit losses on Won-denominated loans. Net other non-operating income attributable to this segment increased 100.0% from ￦7 billion in 2024 to ￦14 billion in 2025, mainly due to an increase in miscellaneous other non-operating income. 138 Table of Contents Comparison of 2024 to 2023 Our profit before income tax expense for this segment increased 104.5% from ￦110 billion in 2023 to ￦225 billion in 2024. Interest income from this segment increased 11.0% from ￦582 billion in 2023 to ￦646 billion in 2024, primarily due to increases in interest income from government bonds, corporate bonds and asset-backed securities. Interest expense for this segment decreased 0.8% from ￦789 billion in 2023 to ￦783 billion in 2024, principally due to a decrease in interest expenses categorized under insurance finance expenses of KB Life Insurance as well as a decrease in interest expenses on investment contract liabilities. Net fee and commission income (expenses) attributable to this segment changed from net expenses of ￦8 billion in 2023 to net income of ￦8 billion in 2024, primarily due to an increase in other miscellaneous fees and commissions received and a decrease in other service-related fees paid. Net insurance income attributable to this segment increased 7.4% from ￦447 billion in 2023 to ￦480 billion in 2024, primarily due to an increase in insurance income, which in turn was mainly attributable to increases in recoveries from reinsurance contracts and expected policy maintenance cost incurred by the customers of KB Life Insurance, the effects of which were offset in part by an increase in insurance claims paid. Net gains on financial instruments at fair value through profit or loss attributable to this segment decreased 56.9% from ￦659 billion in 2023 to ￦284 billion in 2024, primarily due to change in net gains (losses) on valuations of equity securities from a net gain in 2023 to a net loss in 2024, an increase in losses on currency futures held-for-trading and decreases in gains on valuations of debt securities and foreign investment securities. Net other insurance finance expenses attributable to this segment decreased 30.3% from ￦547 billion in 2023 to ￦381 billion in 2024, primarily due to a decrease in other insurance finance expenses related to the direct insurance contracts of KB Life Insurance, which was offset in part by an increase in foreign exchange translation losses. Net other operating income (expenses) attributable to this segment changed from net expenses of ￦137 billion in 2023 to net income of ￦112 billion in 2024, principally due to increases in gains on valuations of foreign currency-denominated assets and liabilities and gains on other fair value hedges, the effects of which were offset in part by an increase in losses on sales of currency forward contracts. General and administrative expenses attributable to this segment increased 48.0% from ￦100 billion in 2023 to ￦148 billion in 2024, primarily due to increases in depreciation and amortization expenses, expenses related to employees and other miscellaneous general and administrative expenses. Reversal of (provision for) credit losses attributable to this segment changed from provisions of ￦2 billion in 2023 to reversal of provisions of ￦1 billion in 2024. Net other non-operating income attributable to this segment increased 40.0% from ￦5 billion in 2023 to ￦7 billion in 2024, mainly due to decreases in losses related to lease modification and other non-operating expenses. 139 Table of Contents Non-Life Insurance Operations This segment consists of the non-life insurance operations of KB Insurance. The following table shows, for the periods indicated, our income statement data for this segment: Year Ended December 31, Percentage Change 2023 2024 2025 2024/2023 2025/2024 (in billions of Won) (%) Income statement data Interest income ￦ 808 ￦ 900 ￦ 1,009 11.4 12.1 Interest expense (1,028 ) (927 ) (1,021 ) (9.8 ) 10.1 Net fee and commission expense (34 ) (36 ) (37 ) 5.9 2.8 Net insurance income 960 1,092 767 13.8 (29.8 ) Net gains on financial instruments at fair value through profit or loss 455 345 514 (24.2 ) 49.0 Net other insurance finance income (expenses) (26 ) (56 ) 46 115.4 N/M (1) Net other operating income (expenses) (33 ) (43 ) 42 30.3 N/M (1) General and administrative expenses (142 ) (140 ) (161 ) (1.4 ) 15.0 Reversal of (Provision for) credit losses (14 ) 2 (19 ) N/M (1) N/M (1) Share of profit of associates and joint ventures 2 2 4 0.0 100.0 Net other non-operating income (expenses) 15 (13 ) (2 ) N/M (1) (84.6 ) Profit before income tax expense 964 1,126 1,142 16.8 1.4 Income tax expense (250 ) (286 ) (363 ) 14.4 26.9 Profit for the year ￦ 714 ￦ 840 ￦ 779 17.6 (7.3 ) (1) “N/M” means not meaningful. Comparison of 2025 to 2024 Our profit before income tax expense for this segment increased 1.4% from ￦1,126 billion in 2024 to ￦1,142 billion in 2025. Interest income attributable to this segment increased 12.1% from ￦900 billion in 2024 to ￦1,009 billion in 2025, primarily due to increases in interest income earned on other loans, government bonds, corporate bonds and privately placed bonds held by KB Insurance. Interest expense attributable to this segment increased 10.1% from ￦927 billion in 2024 to ￦1,021 billion in 2025, primarily due to increases in interest expenses on investment contract liabilities and debentures. Net fee and commission expense attributable to this segment increased 2.8% from ￦36 billion in 2024 to ￦37 billion in 2025, mainly due to a decrease in loan-related fees received and an increase in other miscellaneous fees and commissions paid. Net insurance income attributable to this segment decreased 29.8% from ￦1,092 billion in 2024 to ￦767 billion in 2025, primarily due to an increase in insurance service expense, which in turn was mainly due to higher incurred claims, changes relating to past services and increased expenses relating to contracts accounted for under the premium allocation approach, the effects of which were offset in part by increases in insurance income and reinsurance income. The increase in insurance income was mainly due to an increase in expected incurred claims, while the increase in reinsurance income was mainly due to loss-recovery components. Net gains on financial instruments at fair value through profit or loss attributable to this segment increased 49.0% from ￦345 billion in 2024 to ￦514 billion in 2025, primarily as a result of a change in net gains (losses) on other foreign currency-denominated investment securities from net losses in 2024 to net gains in 2025, an 140 Table of Contents increase in net valuation gains on foreign currency-denominated beneficiary certificates and a change in net gains (losses) on currency forward transactions from net losses in 2024 to net gains in 2025. The effects of such changes were offset in part by a change in net gains (losses) on investment trust beneficiary certificates from net gains in 2024 to net losses in 2025. Net other insurance finance income (expenses) changed from net expenses of ￦56 billion in 2024 to net income of ￦46 billion in 2025, due to increases in both net insurance finance income and net reinsurance finance income. Net other operating income (expenses) attributable to this segment changed from net expenses of ￦43 billion in 2024 to net income of ￦42 billion in 2025, primarily due to a change in net gains (losses) on sales of debt securities from net losses in 2024 to net gains in 2025 and a decrease in losses on valuations of currency forward contracts, the effects of which were offset in part by a change in net gains (losses) on valuations of foreign currency-denominated assets and liabilities from net gains in 2024 to net losses in 2025. General and administrative expenses attributable to this segment increased 15.0% from ￦140 billion in 2024 to ￦161 billion in 2025, principally due to increases in early retirement benefits paid, depreciation and amortization expenses and employee salaries paid. Reversal of (provision for) credit losses attributable to this segment changed from a reversal of provisions of ￦2 billion in 2024 to a provision of ￦19 billion in 2025, primarily due to an increase in provisions for credit losses of Won-denominated loans. Net other non-operating expenses attributable to this segment decreased 84.6% from ￦13 billion in 2024 to ￦2 billion in 2025, principally due to a decrease in miscellaneous other non-operating expenses. Comparison of 2024 to 2023 Our profit before income tax expense for this segment increased 16.8% from ￦964 billion in 2023 to ￦1,126 billion in 2024. Interest income attributable to this segment increased 11.4% from ￦808 billion in 2023 to ￦900 billion in 2024, primarily due to increases in interest income earned on government bonds, other loans and privately placed bonds held by KB Insurance. Interest expense attributable to this segment decreased 9.8% from ￦1,028 billion in 2023 to ￦927 billion in 2024, primarily due to a decrease in interest expenses incurred by KB Insurance from direct insurance contracts and investment contract liabilities. Net fee and commission expense attributable to this segment increased 5.9% from ￦34 billion in 2023 to ￦36 billion in 2024, mainly due to a decrease in miscellaneous other fees received, which was mostly offset by decreases in other service fees and miscellaneous other fees paid. Net insurance income attributable to this segment increased 13.8% from ￦960 billion in 2023 to ￦1,092 billion in 2024, primarily due to an increase in insurance income, mainly reflecting increases in expected incurred claims and recoveries from reinsurance contracts, the effects of which were mostly offset by a decrease in reinsurance income and an increase in insurance expenses. Net gains on financial instruments at fair value through profit or loss attributable to this segment decreased 24.2% from ￦455 billion in 2023 to ￦345 billion in 2024, primarily as a result of a change in net valuation gains (losses) on other foreign currency-denominated investment securities from a net gain in 2023 to a net loss in 2024 and an increase in trading losses on foreign currency beneficiary certificates. 141 Table of Contents Net other insurance finance expenses increased 115.4% from ￦26 billion in 2023 to ￦56 billion in 2024, primarily due to a decrease in net insurance finance income, the effect of which was offset in part by an increase in net reinsurance finance income. Net other operating expenses attributable to this segment increased 30.3% from ￦33 billion in 2023 to ￦43 billion in 2024, primarily due to increases in losses on valuations of currency forward contracts and sales of debt securities, the effects of which were mostly offset by an increase in other gains on fair value hedges. General and administrative expenses attributable to this segment decreased 1.4% from ￦142 billion in 2023 to ￦140 billion in 2024, principally due to a decrease in supplies expense, which was mostly offset by an increase in depreciation and amortization. Reversal of (provision for) credit losses attributable to this segment changed from a provision of ￦14 billion in 2023 to a reversal of provisions of ￦2 billion in 2024, primarily due to a decrease in provisions for credit losses of Won-denominated loans. Share of profit of associates and joint ventures attributable to this segment remained stable at ￦2 billion in 2023 and 2024. Net other non-operating income (expenses) attributable to this segment changed from net income of ￦15 billion in 2023 to net expenses of ￦13 billion in 2024, principally due to a decrease in miscellaneous other non-operating income and an increase in donations. Other “Other” includes the operations of our holding company and all of our subsidiaries that were consolidated under IFRS as issued by the IASB as of December 31, 2025 except Kookmin Bank, KB Kookmin Card, KB Securities, KB Life Insurance and KB Insurance, including principally KB Asset Management, KB Real Estate Trust, KB Investment, KB Credit Information, KB Data System, KB Savings Bank and KB Capital. The following table shows, for the periods indicated, our income statement data for this segment: Year Ended December 31, Percentage Change 2023 2024 2025 2024/2023 2025/2024 (in billions of Won) (%) Income statement data Interest income ￦ 1,408 ￦ 1,586 ￦ 1,537 12.6 (3.1 ) Interest expense (749 ) (898 ) (1,014 ) 19.9 12.9 Net fee and commission income 1,213 1,249 1,302 3.0 4.2 Net gains (losses) on financial instruments at fair value through profit or loss 284 (13 ) 594 N/M (1) N/M (1) Net other operating expenses (749 ) (378 ) (765 ) (49.5 ) 102.4 General and administrative expenses (483 ) (523 ) (535 ) 8.3 2.3 Provision for credit losses (554 ) (414 ) (452 ) (25.3 ) 9.2 Share of profit of associates and joint ventures 11 0 12 (100.0 ) N/A (2) Net other non-operating income (expenses) (11 ) (47 ) 149 327.3 N/M (1) Profit before income tax expense 370 562 828 51.9 47.3 Income tax expense(3) (64 ) (89 ) (107 ) 39.1 20.2 Profit for the year ￦ 305 ￦ 473 ￦ 721 55.1 52.4 (1) “N/M” means not meaningful. (2) “N/A” means not applicable. (3) Represents income tax attributable to our holding company and all of our subsidiaries that were consolidated under IFRS as issued by the IASB except Kookmin Bank, KB Kookmin Card, KB Securities (including its predecessor entities), KB Life Insurance and KB Insurance. 142 Table of Contents Comparison of 2025 to 2024 Our profit before income tax expense for this segment increased 47.3% from ￦562 billion in 2024 to ￦828 billion in 2025. Interest income attributable to this segment decreased 3.1% from ￦1,586 billion in 2024 to ￦1,537 billion in 2025, primarily due to decreases in the average yield on, and the average volume of, retail loans of KB Capital, which was enhanced by a decrease in the average yield on corporate loans of KB Savings Bank but offset in part by an increase in the average balance of such loans. Interest expense attributable to this segment increased 12.9% from ￦898 billion in 2024 to ￦1,014 billion in 2025, mainly due to an increase in funding costs associated with certain of our financial liabilities measured at amortized cost. Net fee and commission income attributable to this segment increased 4.2% from ￦1,249 billion in 2024 to ￦1,302 billion in 2025, principally reflecting increases in trust fees received by KB Asset Management and other fees received by KB Real Estate Trust and a decrease in fees and commissions paid by our consolidated funds, the effects of which were offset in part by decreases in trust fees received by KB Real Estate Trust and rental fees received by KB Capital. Net gains (losses) on financial instruments at fair value through profit or loss attributable to this segment changed from net losses of ￦13 billion in 2024 to net gains of ￦594 billion in 2025, primarily as a result of increases in the gains on valuations of equity securities held by KB Investment and our consolidated funds, as well as increases in the distribution income received on certain investment funds and gains on currency forward contracts. Net other operating expenses attributable to this segment increased 102.4% from ￦378 billion in 2024 to ￦765 billion in 2025, principally due to an increase in expenses relating to our dividend income adjustments and losses on sales of rental assets by KB Capital, the effects of which were offset in part by an increase in our other operating income. General and administrative expenses attributable to this segment increased 2.3% from ￦523 billion in 2024 to ￦535 billion in 2025, which mainly reflected increases in the employee-related expenses of KB Asset Management and KB Capital, the stock grant-related expenses of us and KB Capital, and the short-term employee benefits of KB Investment. Provision for credit losses increased 9.2% from ￦414 billion in 2024 to ￦452 billion in 2025, primarily due to increases in provisions for credit losses of loans of KB Capital and our consolidated funds, which was offset in part by a decrease in provisions for credit losses of other financial assets of KB Real Estate Trust. Share of profit of associates and joint ventures attributable to this segment increased from ￦0 billion in 2024 to ￦12 billion in 2025, mainly reflecting an increase in equity method gains of KB Investment. Net other non-operating income (expenses) attributable to this segment changed from net expenses of ￦47 billion in 2024 to net income of ￦149 billion in 2025, principally reflecting increases in gains on the sales of land and buildings, which was offset in part by increases in miscellaneous other non-operating expenses and impairment losses on buildings. Comparison of 2024 to 2023 Our profit before income tax expense for this segment increased 51.9% from ￦370 billion in 2023 to ￦562 billion in 2024. 143 Table of Contents Interest income attributable to this segment increased 12.6% from ￦1,408 billion in 2023 to ￦1,586 billion in 2024, primarily due to increases in the average volumes of, and average yields on, loans and installment finance receivables of KB Capital. Interest expense attributable to this segment increased 19.9% from ￦749 billion in 2023 to ￦898 billion in 2024, mainly due to increases in the average volume and average cost of debentures of KB Capital. Net fee and commission income attributable to this segment increased 3.0% from ￦1,213 billion in 2023 to ￦1,249 billion in 2024, principally reflecting increases in trust fees received by KB Asset Management and credit-related fees received by KB Capital, the effects of which were offset in part by an increase in fees and commissions paid by our holding company and our consolidated funds. Net gains (losses) on financial instruments at fair value through profit or loss attributable to this segment changed from net gains of ￦284 billion in 2023 to net losses of ￦13 billion in 2024, primarily as a result of an increase in losses on valuation of currency forward contracts held by our holding company and consolidated funds and, to a lesser extent, an increase in losses on valuation of other investment securities held by KB Investment. Net other operating expenses attributable to this segment decreased 49.5% from ￦749 billion in 2023 to ￦378 billion in 2024, principally due to increases in gains on the valuation of foreign currency-denominated assets and liabilities of our consolidated funds and KB Investment. General and administrative expenses attributable to this segment increased 8.3% from ￦483 billion in 2023 to ￦523 billion in 2024, which mainly reflected increases in the employee-related expenses of KB Asset Management and KB Capital. Provision for credit losses decreased 25.3% from ￦554 billion in 2023 to ￦414 billion in 2024, primarily due to decreases in provisions for credit losses of loans of KB Savings Bank and KB Capital, as well as provisions for credit losses of other financial assets of KB Real Estate Trust. Share of profit (loss) of associates and joint ventures attributable to this segment changed from profit of ￦11 billion in 2023 to losses of ￦0 billion in 2024, mainly reflecting a decrease in equity method gains of KB Investment. Net other non-operating expenses attributable to this segment increased more than four-fold from ￦11 billion in 2023 to ￦47 billion in 2024, principally reflecting an increase in impairment losses on land and buildings held by our holding company and our consolidated funds. 144 Table of Contents Item 5.B. Liquidity and Capital Resources Financial Condition Assets The following table sets forth, as of the dates indicated, the principal components of our assets: As of December 31, Percentage Change 2024 2025 2025/2024 (in billions of Won) (%) Cash and due from financial institutions ￦ 29,869 ￦ 34,777 16.4 % Financial assets at fair value through profit or loss 79,450 89,863 13.1 Derivative financial assets 11,731 8,178 (30.3 ) Financial investments 131,009 134,987 3.0 Loans measured at amortized cost: Loans to banks 9,800 8,759 (10.6 ) Loans to customers other than banks: Loans in Korean Won 391,501 408,845 4.4 Loans in foreign currencies 32,933 32,194 (2.2 ) Domestic import usance bills 3,791 3,577 (5.6 ) Off-shore funding loans 626 959 53.2 Call loans — 450 N/A (1) Bills bought in Korean Won 2 2 0.0 Bills bought in foreign currencies 2,379 2,611 9.8 Guarantee payments under acceptances and guarantees 17 5 (70.6 ) Credit card receivables in Korean Won 23,436 23,104 (1.4 ) Credit card receivables in foreign currencies 42 31 (26.2 ) Bonds purchased under repurchase agreements 4,967 8,085 62.8 Privately placed bonds 390 390 0.0 Factored receivables 63 81 28.6 Lease receivables 601 512 (14.8 ) Loans for installment credit 7,126 7,777 9.1 Total loans to customers other than banks 467,874 488,623 4.4 Less: Allowances for credit losses (5,602 ) (5,404 ) (3.5 ) Total loans measured at amortized cost, net 472,072 491,978 4.2 Insurance contract assets 276 271 (1.8 ) Reinsurance contract assets 1,497 1,516 1.3 Property and equipment 5,390 5,134 (4.7 ) Other assets(2) 26,551 31,220 17.6 Total assets ￦ 757,846 ￦ 797,923 5.3 % (1) “N/A” means not applicable. (2) Includes investments in associates and joint ventures, investment property, intangible assets, net defined benefit assets, current income tax assets, deferred income tax assets, assets held for sale, assets included in disposal groups classified as held for sale and miscellaneous other assets. For further information on our assets, see “Item 4.B. Business Overview—Assets and Liabilities.” Our total assets increased 5.3% from ￦757,846 billion as of December 31, 2024 to ￦797,923 billion as of December 31, 2025, principally due to a 4.2% increase in loans from ￦472,072 billion as of December 31, 2024 145 Table of Contents to ￦491,978 billion as of December 31, 2025, which was enhanced by a 13.1% increase in financial assets at fair value through profit or loss from ￦79,450 billion as of December 31, 2024 to ￦89,863 billion as of December 31, 2025 and, to lesser extents, a 16.4% increase in cash and due from financial institutions from ￦29,869 billion as of December 31, 2024 to ￦34,777 billion as of December 31, 2025 and a 17.6% increase in other assets from ￦26,551 billion as of December 31, 2024 to ￦31,220 billion as of December 31, 2025. The increase in loans was mainly due to an increase in loans in Korean Won and, to a lesser extent, an increase in bonds purchased under repurchase agreements. The increase in financial assets at fair value through profit or loss was primarily due to increases in beneficiary certificates, equity assets and debentures at fair value through profit or loss. The increase in other assets was mainly due to an increase in miscellaneous other assets, which was in turn primarily due to an increase in our accounts receivable from securities brokerage activities. Liabilities and Equity The following table sets forth, as of the dates indicated, the principal components of our liabilities and our equity: As of December 31, Percentage Change 2024 2025 2025/2024 (in billions of Won) (%) Liabilities: Financial liabilities at fair value through profit or loss ￦ 10,720 ￦ 11,321 5.6 % Deposits 435,688 462,397 6.1 Borrowings 68,077 70,728 3.9 Debentures 76,171 80,049 5.1 Insurance contract liabilities 55,864 56,790 1.7 Reinsurance contract liabilities 56 60 7.1 Provisions 928 1,264 36.2 Other liabilities(1) 50,526 54,484 7.8 Total liabilities 698,030 737,093 5.6 Equity: Share capital 2,091 2,091 0.0 Hybrid securities 5,083 4,359 (14.2 ) Capital surplus 16,647 16,634 (0.1 ) Accumulated other comprehensive income 497 (467 ) N/M (2) Retained earnings 34,808 38,334 10.1 Treasury shares (1,236 ) (1,902 ) 53.9 Equity attributable to shareholders of the Parent Company 57,889 59,048 2.0 Non-controlling interests 1,926 1,782 (7.5 ) Total equity 59,815 60,830 1.7 Total liabilities and equity ￦ 757,846 ￦ 797,923 5.3 % (1) Includes derivative financial liabilities, current income tax liabilities, deferred income tax liabilities, net defined benefit liabilities, liabilities included in disposal groups classified as held for sale and miscellaneous other liabilities. (2) “N/M” means not meaningful. Our total liabilities increased 5.6% from ￦698,030 billion as of December 31, 2024 to ￦737,093 billion as of December 31, 2025. Such increase was primarily due to a 6.1% increase in deposits from ￦435,688 billion as of December 31, 2024 to ￦462,397 billion as of December 31, 2025, which was enhanced by, to lesser extents, a 7.8% increase in other liabilities from ￦50,526 billion as of December 31, 2024 to ￦54,484 billion as of December 31, 2025 and a 5.1% increase in debentures from ￦76,171 billion as of December 31, 2024 to 146 Table of Contents ￦80,049 billion as of December 31, 2025. Our deposits increased mainly as a result of an increase in demand deposits and, to lesser extents, increases in investment contract liabilities and certificates of deposit. The increase in other liabilities was mainly due to an increase in miscellaneous other liabilities, which was in turn primarily due to increases in our other financial accounts payable to customers and clearing organizations, and trust accounts payable, which were offset in part by a decrease in derivative financial liabilities. The increase in debentures resulted mainly from an increase in debentures denominated in Korean Won and, to a lesser extent, debentures denominated in foreign currencies. Our total equity increased 1.7% from ￦59,815 billion as of December 31, 2024 to ￦60,830 billion as of December 31, 2025. This increase resulted from an increase in our retained earnings, which was offset in part by a change in our accumulated other comprehensive income (loss) from income to loss and decreases in our hybrid securities and treasury shares. Liquidity Our primary source of funding has historically been and continues to be deposits. Deposits amounted to ￦435,688 billion and ￦462,397 billion as of December 31, 2024 and 2025, which represented approximately 75.1% and 75.4% of our total funding, respectively. We have been able to use customer deposits to finance our operations generally, including meeting a portion of our liquidity requirements. Although the majority of deposits are short-term, it has been our experience that the majority of our depositors generally roll over their deposits at maturity, thus providing us with a stable source of funding. However, in the event that a substantial number of our depositors do not roll over their deposits or otherwise decide to withdraw their deposited funds, we would need to place increased reliance on alternative sources of funding, some of which may be more expensive than customer deposits, in order to finance our operations. See “Item 3.D. Risk Factors—Risks relating to liquidity and capital management—Our funding is highly dependent on short-term deposits, which dependence may adversely affect our operations.” In particular, we may increase our utilization of alternative funding sources such as short-term borrowings and cash and cash equivalents (including funds from maturing loans), as well as liquidating our positions in financial assets and using the proceeds to fund parts of our operations, as necessary. We also obtain funding through debentures and borrowings to meet our liquidity needs. Debentures represented 13.1% and 13.1% of our total funding as of December 31, 2024 and 2025, respectively. Borrowings represented 11.7% and 11.5% of our total funding as of December 31, 2024 and 2025, respectively. For further information on our sources of funding, see “Item 4.B. Business Overview—Assets and Liabilities—Funding.” The Financial Services Commission of Korea requires each financial holding company in Korea to maintain specific Won and foreign currency liquidity ratios and each bank in Korea to maintain a liquidity coverage ratio and a foreign currency liquidity coverage ratio. These ratios require us and Kookmin Bank to keep the ratio of liquid assets to liquid liabilities above certain minimum levels. For a description of these requirements, see “Item 4.B. Business Overview—Supervision and Regulation—Principal Regulations Applicable to Financial Holding Companies—Liquidity” and “Item 4.B. Business Overview—Supervision and Regulation—Principal Regulations Applicable to Banks—Liquidity.” We are exposed to liquidity risk arising from withdrawals of deposits, payments of insurance contract claims and refunds, and maturities of our debentures and borrowings, as well as the need to fund our lending, trading and investment activities (including our capital expenditures) and the management of our trading positions. The goal of liquidity management is for us to be able, even under adverse conditions, to meet all of our liability repayments on time and fund all investment opportunities. For an explanation of how we manage our liquidity risk, see “Item 11. Quantitative and Qualitative Disclosures about Market Risk—Liquidity Risk Management.” From time to time, we engage in the purchase and/or cancelation of our own equity securities, as part of our efforts to generate additional shareholder value. See “Item 16E. Purchase of Equity Securities by the Issuer and Affiliated Purchasers” and Note 27.6 of the notes to our consolidated financial statements. 147 Table of Contents We are a financial holding company, and substantially all of our operations are in our subsidiaries. Accordingly, we rely on distributions from our subsidiaries (as well as associates), direct borrowings and issuances of debt and equity securities to fund our liquidity obligations at the holding company level. We received aggregate dividends of ￦2,192 billion, ￦2,243 billion and ￦3,778 billion from our subsidiaries and associates in 2023, 2024 and 2025, respectively. See “Item 3.D. Risk Factors—Risks relating to our financial holding company structure and strategy.” Asset Encumbrance Part of our future funding and collateral needs are supported by assets readily available and unrestricted. The following table sets forth our assets that are available and those that are encumbered and not available to support our future funding and collateral needs as of December 31, 2025. December 31, 2025 Unencumbered Assets Assets Encumbered Assets(1) Readily Available (2) Other (in billions of Won) On-balance sheet Cash and due from financial institutions ￦ 34,777 ￦ 8,248 ￦ 23,192 ￦ 3,337 Financial assets at fair value through profit or loss 89,863 20,448 12,209 57,206 Derivative financial assets 8,178 — — 8,178 Loans measured at amortized cost 491,978 17,559 — 474,419 Financial investments 134,987 26,654 1,681 106,652 Investments in associates and joint ventures 1,137 — — 1,137 Insurance contract assets 271 — — 271 Reinsurance contract assets 1,516 — — 1,516 Property and equipment 5,134 — — 5,134 Investment property 3,224 1,040 — 2,184 Intangible assets 1,609 — — 1,609 Net defined benefit assets 353 — — 354 Current income tax assets 389 — — 389 Deferred income tax assets 193 — — 193 Assets held for sale 175 — — 175 Assets of a disposal group held for sale 94 — — 94 Other assets 24,045 1,004 — 23,041 Total on-balance sheet ￦ 797,923 ￦ 74,953 ￦ 37,082 ￦ 685,889 Off-balance sheet Fair value of securities accepted as collateral ￦ 10,723 ￦ — ￦ 10,723 ￦ — Total off-balance sheet ￦ 10,723 ￦ — ￦ 10,723 ￦ — (1) Represents assets that have been pledged as collateral against an existing liability or are otherwise restricted in their use to secure funding. (2) Represents those on- and off-balance sheet assets that are not otherwise encumbered, and which are in freely transferable form. 148 Table of Contents Commitments and Guarantees The following table sets forth our commitments and guarantees as of December 31, 2025. These commitments and guarantees are not included within our consolidated statements of financial position. Payments Due by Period Total 1 Year or Less 1-3 Years 3-5 Years More Than 5 Years (in billions of Won) Financial guarantees(1) ￦ 7,209 ￦ 2,794 ￦ 3,374 ￦ 795 ￦ 246 Confirmed acceptances and guarantees 11,539 5,250 4,981 778 530 Commitments 213,477 151,255 7,503 4,723 49,996 Total ￦ 232,225 ￦ 159,299 ￦ 15,858 ￦ 6,296 ￦ 50,772 (1) Includes ￦5,380 billion of irrevocable commitments to provide contingent liquidity credit lines to special purpose entities for which we serve as the administrator. See Note 40 of the notes to our consolidated financial statements included elsewhere in this annual report. Capital Adequacy Kookmin Bank is subject to capital adequacy requirements of the Financial Services Commission applicable to Korean banks. The requirements applicable commencing in December 2013 pursuant to amended Financial Services Commission regulations promulgated in July 2013 were formulated based on Basel III, which was first introduced by the Basel Committee on Banking Supervision, Bank for International Settlements in December 2009. Under the amended Financial Services Commission regulations, all banks in Korea are required to maintain certain minimum ratios of common equity Tier I capital, total Tier I capital and total Tier I and Tier II capital to risk-weighted assets. See “Item 4.B. Business Overview—Supervision and Regulation—Principal Regulations Applicable to Banks—Capital Adequacy.” As of December 31, 2025, Kookmin Bank’s total Tier I and Tier II capital adequacy ratio was 17.28%. The following table sets forth a summary of Kookmin Bank’s capital and capital adequacy ratios as of December 31, 2024 and 2025, based on applicable regulatory reporting standards. As of December 31, 2024 2025 (in billions of Won, except percentages) Tier I capital: ￦ 35,059 ￦ 36,961 Common equity Tier I capital 33,993 35,895 Paid-in capital 2,022 2,022 Capital reserves 4,650 4,650 Retained earnings 29,428 30,609 Non-controlling interests in consolidated subsidiaries — — Others (2,107 ) (1,386 ) Additional Tier I capital 1,066 1,066 Tier II capital: 5,515 4,644 Revaluation reserves — — Allowances for credit losses(1) 1,291 1,183 Hybrid debt — — Subordinated debt 4,224 3,461 Valuation gain on financial investments — — Others — — Total core and supplementary capital 40,574 41,604 149 Table of Contents As of December 31, 2024 2025 (in billions of Won, except percentages) Risk-weighted assets 234,436 240,740 Credit risk: 205,656 208,474 Market risk 5,889 6,148 Operational risk 22,891 26,118 Total Tier I and Tier II capital adequacy ratio 17.31 % 17.28 % Tier I capital adequacy ratio 14.95 % 15.35 % Common equity Tier I capital adequacy ratio 14.50 % 14.91 % Tier II capital adequacy ratio 2.35 % 1.93 % (1) Under the standardized approach, allowances for credit losses in respect of credits classified as normal or precautionary are used to calculate Tier II capital only to the extent they represent up to 1.25% of credit risk-weighted assets. Under the internal ratings-based approach, allowances for credit losses, less estimated losses, are used to calculate Tier II capital only to the extent they represent up to 0.6% of credit risk-weighted assets. In addition, we, as a bank holding company, are required to maintain certain minimum capital adequacy ratios pursuant to applicable regulations of the Financial Services Commission. See “Item 4.B. Business Overview—Supervision and Regulation—Principal Regulations Applicable to Financial Holding Companies—Capital Adequacy.” The following table sets forth a summary of our consolidated capital adequacy ratio as of December 31, 2024 and 2025, based on applicable regulatory reporting standards. As of December 31, 2024 2025 (in billions of Won) Tier I capital Common equity Tier I capital ￦ 46,794 ￦ 49,353 Additional Tier I capital 5,683 4,939 Total Tier I capital ￦ 52,477 ￦ 54,292 Tier II capital 4,372 3,553 Risk-weighted assets ￦ 345,981 ￦ 356,996 Total Tier I and Tier II capital adequacy ratio 16.43 % 16.20 % Tier I capital adequacy ratio 15.17 % 15.21 % Common equity Tier I capital adequacy ratio 13.53 % 13.82 % Tier II capital adequacy ratio 1.26 % 1.00 % Recent Accounting Pronouncements See Note 2.1 of the notes to our consolidated financial statements included elsewhere in this annual report for a description of other recent accounting pronouncements under IFRS as issued by the IASB that have been issued but are not yet effective. Item 5.C. Research and Development, Patents and Licenses, etc. Not applicable. Item 5.D. Trend Information These matters are discussed under Item 5.A. and Item 5.B. above where relevant. 150 Table of Contents Item 5.E. Critical Accounting Estimates Not applicable. Item 6. DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES