Exhibit 99.1

KB Financial Group Inc. and Subsidiaries

Consolidated Interim Financial Statements

June 30, 2025 and 2024

(Unaudited)

 

KB Financial Group Inc. and Subsidiaries

 

		Page(s)
Report on Review of Condensed Consolidated Interim Financial Statements			1-2
Consolidated Interim Financial Statements
Consolidated Interim Statements of Financial Position			3
Consolidated Interim Statements of Comprehensive Income			4-5
Consolidated Interim Statements of Changes in Equity			6
Consolidated Interim Statements of Cash Flows			7-8
Notes to the Consolidated Interim Financial Statements			9-173

 

Report on Review of Condensed Consolidated Interim Financial Statements

(English Translation of a Report Originally Issued in Korean)

To the Shareholders and the Board of Directors of

KB Financial Group Inc.

Reviewed Financial Statements

We have reviewed the accompanying condensed consolidated interim financial statements of KB Financial Group Inc. and its subsidiaries (collectively referred to as the “Group”). These condensed consolidated interim financial statements consist of the consolidated interim statement of financial position of the Group as at June 30, 2025, and the related consolidated interim statements of comprehensive income for the three-month and six month periods ended June 30, 2025 and 2024, and consolidated interim statements of changes in equity and cash flows for the six-month periods ended June 30, 2025 and 2024, and material accounting policy information and other selected explanatory notes, expressed in Korean Won.

Management’s Responsibility for the Financial Statements

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

Auditor’s Responsibility

Our responsibility is to express a conclusion on these condensed consolidated interim financial statements based on our review.

We conducted our review in accordance with quarterly or semi-annual review standards established by the Securities and Futures Commission of the Republic of Korea. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Korean Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe the accompanying condensed consolidated interim financial statements are not prepared, in all material respects, in accordance with Korean IFRS No. 1034 Interim Financial Reporting.

 

1

Other Matters

We have audited the consolidated statement of financial position of the Group as at December 31, 2024, and the related consolidated statements of comprehensive income, changes in equity and cash flows for the year then ended, not presented herein, in accordance with Korean Standards on Auditing. We expressed an unqualified opinion on those financial statements in our audit report dated March 5, 2025. The consolidated statement of financial position as at December 31, 2024, presented herein for comparative purposes, is consistent, in all material respects, with the above audited statement of financial position as at December 31, 2024.

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

/s/ Samil PricewaterhouseCoopers

Seoul, Korea

August 14, 2025

 

This report is effective as of August  14, 2025, the review report date. Certain subsequent events or circumstances, which may occur between the review report date and the time of reading this report, could have a material impact on the accompanying condensed consolidated interim financial statements and notes thereto. Accordingly, the readers of the review report should understand that there is a possibility that the above review report may have to be revised to reflect the impact of such subsequent events or circumstances, if any.

 

2

KB Financial Group Inc. and Subsidiaries

Consolidated Interim Statements of Financial Position

June 30, 2025 and December 31, 2024

(in millions of Korean won)

 

		Notes				June 30, 2025 (Unaudited)				December 31, 2024
Assets
Cash and due from financial institutions			4,6,7,30			W	34,118,314			W	29,869,111
Financial assets at fair value through profit or loss			4,6,11				88,393,886				79,450,093
Derivative financial assets			4,6,8				6,922,873				11,730,767
Loans measured at amortized cost			4,6,9,10				478,247,445				472,071,840
Financial investments			4,6,11				130,061,191				131,009,464
Investments in associates and joint ventures							945,501				947,390
Insurance contract assets			29				347,273				276,191
Reinsurance contract assets			29				1,528,005				1,497,147
Property and equipment							5,179,524				5,390,015
Investment property							3,215,232				3,759,176
Intangible assets							1,817,654				1,966,684
Net defined benefit assets			18				290,125				258,500
Current income tax assets							344,131				339,855
Deferred income tax assets			12,25				167,555				278,824
Assets held for sale							279,873				136,838
Other assets			4,6				28,764,082				18,863,637
Total assets						W	780,622,664			W	757,845,532
Liabilities
Financial liabilities at fair value through profit or loss			4,6,13			W	10,286,282			W	10,720,231
Derivative financial liabilities			4,6,8				6,332,298				11,783,494
Deposits			4,6,14				442,086,824				435,687,897
Borrowings			4,6,15				69,921,065				68,077,012
Debentures			4,6,16				74,120,211				76,171,257
Insurance contract liabilities			29				58,839,867				55,863,701
Reinsurance contract liabilities			29				63,334				56,266
Provisions			17				919,400				927,632
Net defined benefit liabilities			18				97,076				100,187
Current income tax liabilities							477,380				530,720
Deferred income tax liabilities			12,25				1,750,181				1,682,292
Other liabilities			4,6				54,774,797				36,429,662
Total liabilities							719,668,715				698,030,351
Equity
Share capital							2,090,558				2,090,558
Hybrid securities							5,162,483				5,082,578
Capital surplus							16,645,909				16,646,734
Accumulated other comprehensive income			27				(276,887	)			496,922
Retained earnings							36,688,909				34,808,220
Treasury shares							(1,241,538	)			(1,236,060	)
Equity attributable to shareholders of the Parent Company			19				59,069,434				57,888,952
Non-controlling interests							1,884,515				1,926,229
Total equity							60,953,949				59,815,181
Total liabilities and equity						W	780,622,664			W	757,845,532

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

 

3

KB Financial Group Inc. and Subsidiaries

Consolidated Interim Statements of Comprehensive Income

Three-Month and Six-Month Periods Ended June 30, 2025 and 2024

(in millions of Korean won, except per share amounts)

 

		Notes		2025 (Unaudited)								2024 (Unaudited)
				Three months				Six months				Three months				Six months
Interest income				W	7,284,633			W	14,739,574			W	7,611,315			W	15,224,888
Interest income from financial instruments at fair value through other comprehensive income and amortized cost					6,922,324				14,005,120				7,243,831				14,472,708
Interest income from financial instruments at fair value through profit or loss					353,152				715,207				359,835				736,588
Insurance finance interest income					9,157				19,247				7,649				15,592
Interest expense					(4,178,107	)			(8,370,883	)			(4,384,962	)			(8,828,650	)
Interest expense					(3,804,895	)			(7,615,529	)			(4,012,831	)			(8,079,357	)
Insurance finance interest expense					(373,212	)			(755,354	)			(372,131	)			(749,293	)
Net interest income		5,20			3,106,526				6,368,691				3,226,353				6,396,238
Fee and commission income					1,446,966				2,777,199				1,330,604				2,726,904
Fee and commission expense					(415,030	)			(811,215	)			(410,969	)			(817,176	)
Net fee and commission income		5,21			1,031,936				1,965,984				919,635				1,909,728
Insurance income					3,036,603				6,144,414				2,844,788				5,577,528
Insurance income					2,900,194				5,735,262				2,744,165				5,438,821
Reinsurance income					136,409				409,152				100,623				138,707
Insurance expense					(2,624,467	)			(5,294,525	)			(2,352,691	)			(4,542,460	)
Insurance service expense					(2,396,702	)			(4,860,901	)			(2,128,285	)			(4,103,868	)
Reinsurance expense					(227,765	)			(433,624	)			(224,406	)			(438,592	)
Net insurance income		5,29			412,136				849,889				492,097				1,035,068
Net gains on financial instruments at fair value through profit or loss		5,22			1,566,145				2,112,363				321,577				570,710
Other insurance finance expenses		5,29			(273,721	)			(413,291	)			(224,347	)			(369,654	)
Net other operating expenses		5,23			(1,305,244	)			(1,791,668	)			(285,858	)			(690,568	)
General and administrative expenses		5,18,24			(1,749,696	)			(3,355,261	)			(1,593,891	)			(3,222,127	)
Operating income before provision for credit losses		5			2,788,082				5,736,707				2,855,566				5,629,395
Provision for credit losses		5,7,9,10,17			(655,111	)			(1,310,708	)			(552,818	)			(981,088	)
Net operating income		5			2,132,971				4,425,999				2,302,748				4,648,307
Share of profit (loss) of investments in associates and joint ventures		5			4,813				10,261				(694	)			(2,113	)
Net other non-operating income (expenses)		5			205,357				213,487				67,677				(878,868	)
Net non-operating income (expenses)					210,170				223,748				66,983				(880,981	)
Profit before income tax expense		5			2,343,141				4,649,747				2,369,731				3,767,326
Income tax expense		5,25			(595,561	)			(1,203,045	)			(658,827	)			(1,000,359	)
Profit for the period		5			1,747,580				3,446,702				1,710,904				2,766,967

(Continued)

 

4

KB Financial Group Inc. and Subsidiaries

Consolidated Interim Statements of Comprehensive Income

Three-Month and Six-Month Periods Ended June 30, 2025 and 2024 (cont’d)

(in millions of Korean won, except per share amounts)

 

		Notes				2025 (Unaudited)								2024 (Unaudited)
						Three months				Six months				Three months				Six months
Items that will not be reclassified to profit or loss:
Remeasurements of net defined benefit liabilities						W	6,637				(790	)		W	2,756				11,751
Share of other comprehensive loss of associates and joint ventures							168,860				213,283				(230,369	)			(242,935	)
Gains (losses) on equity securities at fair value through other comprehensive income							(4,862	)			(10,707	)			(2,040	)			(10,883	)
							170,635				201,786				(229,653	)			(242,067	)
Items that may be reclassified subsequently to profit or loss:
Currency translation differences							(337,087	)			(351,553	)			119,469				282,414
Gains(losses) on debt securities at fair value through other comprehensive income							(568,282	)			342,749				559,490				(97,737	)
Share of other comprehensive income (loss) of associates and joint ventures							(2,452	)			(2,328	)			56				(86	)
Gains (losses) on cash flow hedging instruments			8				(61,776	)			(30,275	)			5,615				(31,182	)
Gains (losses) on hedging instruments of net investments in foreign operations			8				123,470				126,994				(40,016	)			(91,219	)
Insurance finance income(expense)			29				798,927				(1,071,678	)			(1,126,765	)			(1,269,498	)
							(47,200	)			(986,091	)			(482,151	)			(1,207,308	)
Other comprehensive income (loss) for the period, net of tax							123,435				(784,305	)			(711,804	)			(1,449,375	)
Total comprehensive income (loss) for the period						W	1,871,015			W	2,662,397			W	999,100			W	1,317,592
Profit(loss) attributable to:			5
Shareholders of the Parent Company						W	1,738,422			W	3,435,693			W	1,732,449			W	2,774,431
Non-controlling interests							9,158				11,009				(21,545	)			(7,464	)
						W	1,747,580			W	3,446,702			W	1,710,904			W	2,766,967
Total comprehensive income (loss) for the period attributable to:
Shareholders of the Parent Company						W	1,859,757			W	2,657,343			W	1,016,474			W	1,312,833
Non-controlling interests							11,258				5,054				(17,374	)			4,759
						W	1,871,015			W	2,662,397			W	999,100			W	1,317,592
Earnings per share (in Korean won)			28
Basic earnings per share						W	4,603			W	9,031			W	4,417			W	7,023
Diluted earnings per share							4,565				8,950				4,377				6,934

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

 

5

KB Financial Group Inc. and Subsidiaries

Consolidated Interim Statements of Changes in Equity

Six-Month Periods Ended June 30, 2025 and 2024

(in millions of Korean won)

 

		Equity attributable to shareholders of the Parent Company
		Share capital				Hybrid securities				Capital surplus				Accumulated other comprehensive income				Retained earnings				Treasury shares				Non-controlling interests				Total equity
Balance as of January 1, 2024		W	2,090,558			W	5,032,803			W	16,647,916			W	2,152,644			W	31,934,600			W	(1,165,837	)		W	1,943,506			W	58,636,190
Comprehensive income for the period																															—
Profit for the period			—				—				—				—				2,774,431				—				(7,464	)			2,766,967
Remeasurements of net defined benefit liabilities			—				—				—				11,484				—				—				267				11,751
Currency translation differences			—				—				—				269,773				—				—				12,641				282,414
Losses on financial instruments at fair value through other comprehensive income and transfer to retained earnings			—				—				—				(336,495	)			(3,492	)			—				(685	)			(340,672	)
Share of other comprehensive income of associates and joint ventures			—				—				—				(86	)			—				—				—				(86	)
Losses on cash flow hedging instruments			—				—				—				(31,182	)			—				—				—				(31,182	)
Losses on hedging instruments of net investments in foreign operations			—				—				—				(91,219	)			—				—				—				(91,219	)
Insurance finance expenses			—				—				—				(1,269,498	)			—				—				—				(1,269,498	)
Fair value changes of financial liabilities designated at fair value through profit or loss due to own credit risk			—				—				—				(10,883	)			—				—				—				(10,883	)
Total comprehensive income for the period			—				—				—				(1,458,106	)			2,770,939				—				4,759				1,317,592
Transactions with shareholders
Annual dividends paid to shareholders of the Parent Company			—				—				—				—				(587,006	)			—				—				(587,006	)
Quarterly dividends paid to shareholders of the Parent Company			—				—				—				—				(300,086	)			—				—				(300,086	)
Issuance of hybrid securities			—				399,059				—				—				—				—				756,316				1,155,375
Dividends on hybrid securities			—				—				—				—				(100,530	)			—				(39,591	)			(140,121	)
Redemption of hybrid securities			—				(349,309	)			—				—				—				—				—				(349,309	)
Acquisition of treasury shares			—				—				—				—				—				(320,000	)			—				(320,000	)
Disposal of treasury shares			—				—				3,975				—				—				234,600				—				238,575
Ownership changes in subsidiaries			—				—				—				—				—				—				15,436				15,436
Others			—				—				(5,786	)			—				—				—				(10,662	)			(16,448	)
Total transactions with shareholders			—				49,750				(1,811	)			—				(987,622	)			(85,400	)			721,499				(303,584	)
Balance as of June 30, 2024 (Unaudited)		W	2,090,558			W	5,082,553			W	16,646,105			W	694,538			W	33,717,917			W	(1,251,237	)		W	2,669,764			W	59,650,198
Balance as of January 1, 2025		W	2,090,558			W	5,082,578			W	16,646,734			W	496,922			W	34,808,220			W	(1,236,060	)		W	1,926,229			W	59,815,181
Comprehensive income for the period
Profit for the period			—				—				—				—				3,435,693				—				11,009				3,446,702
Remeasurements of net defined benefit liabilities			—				—				—				(150	)			—				—				(640	)			(790	)
Currency translation differences			—				—				—				(346,045	)			—				—				(5,508	)			(351,553	)
Gains(losses) on financial instruments at fair value through other comprehensive income and transfer to retained earnings			—				—				—				560,316				(4,541	)			—				257				556,032
Share of other comprehensive income of associates and joint ventures			—				—				—				(2,328	)			—				—				—				(2,328	)
Losses on cash flow hedging instruments			—				—				—				(30,211	)			—				—				(64	)			(30,275	)
Gains on hedging instruments of net investments in foreign operations			—				—				—				126,994				—				—				—				126,994
Insurance finance expenses			—				—				—				(1,071,678	)			—				—				—				(1,071,678	)
Fair value changes of financial liabilities designated at fair value through profit or loss due to own credit risk			—				—				—				(10,707	)			—				—				—				(10,707	)
Total comprehensive income for the period			—				—				—				(773,809	)			3,431,152				—				5,054				2,662,397
Transactions with shareholders
Annual dividends paid to shareholders of the Parent Company			—				—				—				—				(298,285	)			—				—				(298,285	)
Quarterly dividends paid to shareholders of the Parent Company			—				—				—				—				(334,339	)			—				—				(334,339	)
Issuance of hybrid securities			—				404,014				—				—				—				—				—				404,014
Dividends on hybrid securities			—				—				—				—				(103,317	)			—				(65,236	)			(168,553	)
Redemption of hybrid securities			—				(324,109	)			—				—								—				—				(324,109	)
Acquisition of treasury shares			—				—				—				—								(820,000	)			—				(820,000	)
Retirement of treasury shares			—				—				—				—				(814,522	)			814,522				—				—
Ownership changes in subsidiaries			—				—				—				—								—				688				688
Others			—				—				(825	)			—								—				17,780				16,955
Total transactions with shareholders			—				79,905				(825	)			—				(1,550,463	)			(5,478	)			(46,768	)			(1,523,629	)
Balance as of June 30, 2025 (Unauidted)		W	2,090,558			W	5,162,483			W	16,645,909			W	(276,887	)		W	36,688,909			W	(1,241,538	)		W	1,884,515			W	60,953,949

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

 

6

KB Financial Group Inc. and Subsidiaries

Consolidated Interim Statements of Cash Flows

Six-Month Periods Ended June 30, 2025 and 2024

(in millions of Korean won)

 

		Notes				2025 (Unaudited)				2024 (Unaudited)
Cash flows from operating activities
Profit for the period						W	3,446,702			W	2,766,967
Adjustment for non-cash items
Net gains on financial assets at fair value through profit or loss							(1,612,942	)			(247,630	)
Net gains (losses) on derivative financial instruments for hedging purposes							(92,938	)			114,438
Provision for credit losses							1,310,708				981,088
Net gains on financial investments							(124,470	)			(33,456	)
Share of profit (losses) of associates and joint ventures							(10,261	)			2,113
Depreciation and amortization expense							447,130				443,731
Other net gains (losses) on property and equipment/intangible assets							(257,488	)			71,432
Share-based payments							81,703				91,671
Post-employment benefits							94,801				90,716
Net interest expense (income)							139,204				(43,579	)
Losses on foreign currency translation							918,459				109,308
Insurance finance income							(5,508,058	)			(5,384,979	)
Reinsurance finance expense							586,672				856,654
Other expenses							507,699				414,331
							(3,519,781	)			(2,534,162	)
Changes in operating assets and liabilities
Financial asset at fair value through profit or loss							(5,180,820	)			375,606
Derivative financial instruments							55,314				(195,153	)
Loans measured at fair value through other comprehensive income							(160,472	)			(172,808	)
Loans measured at amortized cost							(8,909,044	)			(11,027,026	)
Current income tax assets							(4,276	)			(50,771	)
Deferred income tax assets							105,785				3,443
Other assets							(11,828,329	)			(3,271,599	)
Financial liabilities at fair value through profit or loss							(784,957	)			(372,139	)
Deposits							7,858,236				11,682,717
Current income tax liabilities							(53,340	)			175,339
Deferred income tax liabilities							246,169				299,379
Other liabilities							15,202,066				5,383,954
Insurance contract assets							(71,081	)			(65,278	)
Reinsurance contract assets							(624,348	)			(739,387	)
Insurance contract liabilities							7,024,940				6,033,978
Reinsurance contract liabilities							17,569				18,608
Investment contract liabilities							1,002,485				(92,217	)
							3,895,897				7,986,646
Net cash inflow from operating activities							3,822,818				8,219,451

(Continued)

 

 

7

KB Financial Group Inc. and Subsidiaries

Consolidated Interim Statements of Cash Flows

Six-Month Periods Ended June 30, 2025 and 2024 (cont’d)

(in millions of Korean won)

 

		Notes				2025 (Unaudited)				2024 (Unaudited)
Cash flows from investing activities
Net cash flows from derivative financial instruments for hedging purposes							(82,266	)			(8,886	)
Disposal of financial asset at fair value through profit or loss							12,621,999				7,490,101
Acquisition of financial asset at fair value through profit or loss							(15,587,303	)			(7,731,942	)
Disposal of financial investments							30,593,942				21,936,610
Acquisition of financial investments							(29,137,256	)			(27,884,738	)
Disposal of investments in associates and joint ventures							176,800				67,338
Acquisition of investments in associates and joint ventures							(168,127	)			(52,759	)
Disposal of property and equipment							53,733				4,784
Acquisition of property and equipment							(197,437	)			(94,677	)
Disposal of investment property							763,052				—
Acquisition of investment property							(183,504	)			—
Disposal of intangible assets							3,137				7,754
Acquisition of intangible assets							(69,779	)			(160,432	)
Net cash flows from changes in ownership of subsidiaries							1,095,858				222,385
Others							(66,104	)			(164,459	)
Net cash outflow from investing activities							(183,255	)			(6,368,921	)
Cash flows from financing activities
Net cash flows from derivative financial instruments for Hedging purposes							(166,979	)			(107,234	)
Net Increase (decrease) in borrowings							3,343,640				(4,168,040	)
Increase in debentures							29,241,802				19,061,430
Decrease in debentures							(30,641,374	)			(16,570,955	)
Increase in other payables to trust accounts							1,998,371				1,660,813
Dividends paid							(632,623	)			(887,092	)
Issuance of hybrid securities							404,014				399,059
Redemption of hybrid securities							(325,000	)			(349,309	)
Dividends paid on hybrid securities							(103,317	)			(100,530	)
Acquisition of treasury shares							(820,000	)			(320,000	)
Redemption of principal elements of lease payments							(311,363	)			(158,994	)
Decrease in non-controlling interests							61,180				730,047
Others							(189,405	)			(101,502	)
Net cash inflow (outflow) from financing activities							1,858,946				(912,307	)
Effect of exchange rate changes on cash and cash equivalents							(238,215	)			315,367
Net increase in cash and cash equivalents							5,260,294				1,253,590
Cash and cash equivalents at the beginning of the period			30				24,608,867				25,826,588
Cash and cash equivalents at the end of the period			30			W	29,869,161			W	27,080,178

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

 

8

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Interim Financial Statements

June 30, 2025 and 2024 (Unaudited), and December 31, 2024

1. The Parent Company

KB Financial Group Inc. (the “Parent Company”) was incorporated on September 29, 2008, under the Financial Holding Companies Act of Korea. KB Financial Group Inc. and its subsidiaries (the “Group”) derive substantially all of their revenue and income from providing a broad range of banking and related financial services to consumers and corporations. The Parent Company’s main business purpose is to control subsidiaries that engage in the financial business or subsidiaries closely related to the financial business through the stock ownership. The Parent Company’s headquarter is located at 26, Gukjegeumyung-ro 8-gil, Yeongdeungpo-gu, Seoul. In 2011, Kookmin Bank spun off its credit card business segment and established a new separate credit card company, KB Kookmin Card Co., Ltd. and KB Investment & Securities Co., Ltd. merged with KB Futures Co., Ltd. The Group established KB Savings Bank Co., Ltd. in January 2012, acquired Yehansoul Savings Bank Co., Ltd. in September 2013, and KB Savings Bank Co., Ltd. merged with Yehansoul Savings Bank Co., Ltd. in January 2014. In March 2014, the Group acquired Woori Financial Co., Ltd. and changed the name to KB Capital Co., Ltd. Meanwhile, the Group included LIG Insurance Co., Ltd. as an associate and changed the name to KB Insurance Co., Ltd. in June 2015, and KB Insurance Co., Ltd. became one of the subsidiaries through a tender offer in May 2017. Also, the Group included Hyundai Securities Co., Ltd. as an associate in June 2016 and included as a subsidiary in October 2016 by comprehensive exchange of shares. Hyundai Securities Co., Ltd. merged with KB Investment & Securities Co., Ltd. in December 2016 and changed its name to KB Securities Co., Ltd. in January 2017. In August 2020, the Group acquired Prudential Life Insurance Company of Korea Ltd. which was classified as a subsidiary and the name was changed to KB Life Insurance Co., Ltd. in December 2022. Then in January 2023, it merged with another existing KB Life Insurance Co., Ltd. The Parent Company sold 100% shares of KB Credit Information Co., Ltd. to KB Kookmin Card Co., Ltd. on June 30, 2023.

The Parent Company’s share capital as of June 30, 2025, is W 2,090,558 million. The Parent Company has been listed on the Korea Exchange (“KRX”) since October 10, 2008, and on the New York Stock Exchange (“NYSE”) for its American Depositary Shares (“ADS”) since September 29, 2008. Number of shares authorized in its Articles of Incorporation is 1,000 million.

 

9

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Interim Financial Statements

June 30, 2025 and 2024 (Unaudited), and December 31, 2024

 

2. Basis of Preparation

2.1 Application of Korean IFRS

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

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

The preparation of the consolidated financial statements requires the use of certain critical accounting estimates. Management also needs to exercise judgment in applying the Group’s accounting policies. The areas that require a more complex and higher level of judgment or areas that require significant assumptions and estimations are disclosed in Note 2.4.

The Group’s condensed consolidated interim financial statements for the six-month period ended June 30, 2025, have been prepared in accordance with Korean IFRS No.1034 Interim Financial Reporting and contain less information than is required in annual consolidated financial statements. Selected explanatory notes include descriptions of transactions or events that are significant in understanding change in financial position and financial performance of the Group since the end of the previous annual reporting period. These condensed consolidated interim financial statements have been prepared in accordance with Korean IFRS which is effective or early adopted as of June 30, 2025.

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

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

The amendments require the Group to determine a spot exchange rate when exchangeability is lacking, and to disclose information on the nature and financial effects of the currency not being exchangeable into the other currency, the spot exchange rate(s) used, the estimation process, and the risks to which the Group is exposed. These amendments do not have a significant impact on the financial statements.

 

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KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Interim Financial Statements

June 30, 2025 and 2024 (Unaudited), and December 31, 2024

 

2.1.2 The following are the accounting standards that have been established or announced but have not yet been implemented, which the Group has not applied

- Amendment of Korean IFRS No.1109 “Financial Instruments” and No.1107 “Financial Instruments”

The amendments respond to recent questions arising in practice. This amendment will be applied to the financial statements for the accounting year beginning on or after January 1, 2026. These amendments do not have a significant impact on the financial statements.

 

-

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

 

-

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

 

-

add new disclosures for certain instruments with contractual terms that can change cash flows

 

-

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

- Korean IFRS Accounting Standards Annual Improvements Volume 11

Korean IFRS Accounting Standards Annual Improvements Volume 11 will be effective for annual reporting periods beginning on or after January 1, 2026. These amendments do not have a significant impact on the financial statements.

 

•

Korean IFRS No.1101 “First-time adoption of International Financial Reporting Standards”: Hedge accounting by a first-time adopter

 

•

Korean IFRS No.1107 “Financial Instruments: Disclosures”: Gain or loss on derecognition, Application guidance

 

•

Korean IFRS No.1109 “Financial Instruments”: Derecognition of lease liabilities, Definition of transaction price

 

•

Korean IFRS No.1110 “Consolidated Financial Statements”: Determination of a ‘de facto agent’

 

•

Korean IFRS Bo.1007 “Statement of Cash Flows”: Cost method

2.1.3 Restatement of financial statements for the six-month period ended June 30, 2024 for the application of Insurance Contract accounting policy changes

In applying K-IFRS No. 1117, the Group has developed and applied its own accounting policies for areas where accounting treatment is not clearly defined. In order to provide more reliable and relevant information, the Group has changed some of these policies during the year ended December 31, 2024, and has retrospectively applied them to each prior reporting period presented in accordance with Korean IFRS No. 1008, “Accounting Policies, Changes in Accounting Estimates, and Errors”.

There is no effect on the statement of cash flows due to the change in accounting policy. The effects of applying the changes in accounting policies on the comprehensive income statement for the six-month period ended June 30, 2024, and the financial position as of December 31, 2023, are as follows:

 

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KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Interim Financial Statements

June 30, 2025 and 2024 (Unaudited), and December 31, 2024

 

2.1.3.1 The condensed consolidated statement of comprehensive income for the six-month period ended June 30, 2024

 

(In millions of Korean won)		Before the effects of change in accounting policy				After the effects of change in accounting policy				Net increase (decrease)
Interest income		W	6,357,722			W	6,396,238			W	38,516
Insurance finance interest income Insurance finance interest expense			16,237 (788,454	)			15,592 (749,293	)			(645 39,161	)
Net insurance income			1,018,102				1,035,068				16,966
Insurance income			5,568,240				5,577,528				9,288
Insurance income			5,429,533				5,438,821				9,288
Insurance expense			(4,550,138	)			(4,542,460	)			7,678
Insurance service expense			(4,103,681	)			(4,103,868	)			(187	)
Reinsurance expense			(446,457	)			(438,592	)			7,865
Other insurance finance expenses			(304,782	)			(369,654	)			(64,872	)
Net operating income			4,657,697				4,648,307				(9,390	)
Net non-operating expenses			(880,981	)			(880,981	)			—
Profit before income tax expense			3,776,716				3,767,326				(9,390	)
Income tax expense			(1,002,837	)			(1,000,359	)			2,478
Profit for the period			2,773,879				2,766,967				(6,912	)
Other comprehensive income (loss), net of tax			(1,521,003	)			(1,449,375	)			71,628
Net Financial Income (Expense) of Insurance Contract Assets (Liabilities)			(1,341,126	)			(1,269,498	)			71,628
Total comprehensive income for the period		W	1,252,876			W	1,317,592			W	64,716

 

12

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Interim Financial Statements

June 30, 2025 and 2024 (Unaudited), and December 31, 2024

 

2.1.3.2 The condensed consolidated statements of financial position as of December 31, 2023

 

(In millions of Korean won)		Before the effects of change in accounting policy				After the effects of change in accounting policy				Net increase (decrease)
Reinsurance contract assets		W	1,655,168			W	1,642,432			W	(12,736	)
Total assets			715,738,152				715,725,416				(12,736	)
Insurance contract liabilities			50,308,552				50,617,990				309,438
Deferred income tax liabilities			2,179,966				2,094,912				(85,054	)
Total liabilities			656,864,842				657,089,226				224,384
Accumulated other comprehensive income (loss)			2,295,165				2,152,644				(142,521	)
Retained earnings			32,029,199				31,934,600				(94,599	)
Total equity			58,873,310				58,636,190				(237,120	)
Total liabilities and equity		W	715,738,152			W	715,725,416			W	(12,736	)

2.2 Measurement Basis

The consolidated financial statements have been prepared based on the historical cost accounting model unless otherwise specified.

2.3 Functional and Presentation Currency 

Items included in the financial statements of each entity of the Group are measured using the currency of the primary economic environment in which the entity operates (“functional currency“). The consolidated financial statements are presented in Korean won, which is the Parent Company‘s functional and presentation currency.

2.4 Critical Accounting Estimates

The Group applies accounting policies and uses judgements, accounting estimates and assumptions that may have a significant impact on the assets (liabilities) and incomes (expenses). Management’s estimates of outcomes may differ from actual outcomes if management’s estimates and assumptions based on management’s best judgment at the reporting date are different from the actual environment.

Estimates and underlying assumptions are continually evaluated, and changes in accounting estimates are recognized in the period in which the estimates are changed and in any future periods affected.

Uncertainties in estimates and assumptions with significant risks used in the preparation of these condensed consolidated interim financial statements are the same as those applied to the consolidated financial statements for the year ended December 31, 2024.

3. Material Accounting Policies

The material accounting policies and calculation methods applied in the preparation of these consolidated interim financial statements are the same as those applied to the consolidated financial statements for the year ended December 31, 2024, except for the impact of changes due to adopting new and amended standards and interpretations described in Note 2.1 and below paragraph.

 

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