Exhibit 99.2

WOORI FINANCIAL GROUP INC.

SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF AND FOR THE THREE-MONTH PERIODS ENDED MARCH 31, 2023 AND 2022

WOORI FINANCIAL GROUP INC.

 

		Page(s)
Independent Auditor’s Review Report			1-2
Separate Interim Financial Statements
Separate Interim Statements of Financial Position			4
Separate Interim Statements of Comprehensive Income			5
Separate Interim Statements of Changes in Equity			6
Separate Interim Statements of Cash Flows			7
Notes to the Separate Interim Financial Statements			8-49

Independent Auditor’s Review Report

Based on a report originally issued in Korean

To the Board of Directors and Shareholders of Woori Financial Group Inc.

Reviewed Financial Statements

We have reviewed the accompanying condensed separate interim financial statements of Woori Financial Group Inc. (the “Company”), which comprise the separate interim statement of financial position as of March 31, 2023, the separate interim statements of comprehensive income for the three-month periods ended March 31, 2023, the separate interim statements of changes in equity and cash flows for the three-month periods ended March 31, 2023 and notes, comprising a summary of material accounting policy information and other explanatory information.

Management’s Responsibility

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

Auditor’s review responsibility

Our responsibility is to issue a report on these condensed separate interim financial statements based on our reviews.

We conducted our reviews in accordance with the Review Standards for Quarterly and Semiannual Financial Statements 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 separate interim financial statements referred to above are not prepared, in all material respects, in accordance with K-IFRS No.1034 Interim Financial Reporting.

 

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Other Matters

The procedures and practices utilized in the Republic of Korea to review such condensed separate interim financial statements may differ from those generally accepted and applied in other countries.

The accompanying condensed separate interim statements of comprehensive income, changes in equity and cash flows for the three-month periods ended March 31, 2022, were reviewed by other auditor whose report thereon, dated May 16, 2022, expressed that nothing came to their attention that caused them to believe that those condensed interim financial statements are not prepared, in all material respects, in accordance with K-IFRS No.1034 Interim Financial Reporting.

The separate statement of financial position of the Company as of December 31, 2022, and the related separate statements of comprehensive income, changes in equity and cash flows for the year the ended, which are not accompanying this report, were audited by other auditor in accordance with Korean Standards on Auditing and their report thereon, dated March 7, 2023, expressed an unqualified opinion. The accompanying separate statement of financial position of the Company as of December 31, 2022, presented for comparative purposes, is consistent, in all material respects, with the audited separate statement of financial position from which it has been derived.

/s/ KPMG Samjong Accounting Corp.

Seoul, Korea

May 15, 2023

This report is effective as of May 15, 2023, 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 separate interim financial statements and notes thereto. Accordingly, the readers of the review report should understand that the above review report has not been updated to reflect the impact of such subsequent events or circumstances, if any.

 

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WOORI FINANCIAL GROUP INC.

SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2023 AND FOR THE THREE-MONTH PERIODS

ENDED MARCH 31, 2023 AND 2022

The accompanying separate interim financial statements including all footnote disclosures were prepared by, and are the responsibility of, the management of Woori Financial Group Inc.

Jong Yong Yim

President and Chief Executive Officer

Main Office Address: (Road Name Address) 51, Sogong-ro, Jung-gu, Seoul

(Phone Number)    02-2125-2000

WOORI FINANCIAL GROUP INC.

SEPARATE INTERIM STATEMENTS OF FINANCIAL POSITION

AS OF MARCH 31, 2023 (UNAUDITED) AND DECEMBER 31, 2022

 

		March 31, 2023				December 31, 2022
		(Korean Won in millions)
ASSETS
Cash and cash equivalents (Notes 5 and 31)			1,460,900				313,361
Financial assets at fair value through profit or loss (“FVTPL”) (Notes 4, 6, 9 and 18)			—				689
Financial assets at fair value through other comprehensive income (“FVTOCI”) (Notes 4, 7 and 9)			325,083				312,771
Loans and other financial assets at amortized cost (Notes 4, 8, 9 and 31)			2,269,569				2,041,877
Investments in subsidiaries (Notes 10 and 31)			22,786,881				22,394,915
Premises and equipment (Notes 11 and 31)			10,420				11,052
Intangible assets (Note 12)			4,845				4,859
Net defined benefit asset (Note 16)			2,471				5,947
Current tax assets (Note 28)			730				14,350
Deferred tax assets (Note 28)			9,843				13,433
Other assets (Note 13)			517				322
Total assets			26,871,259				25,113,576
LIABILITIES
Debentures (Notes 4, 9 and 14)			1,447,912				1,447,762
Provisions (Note 15)			1,253				487
Current tax liabilities			766,837				721,795
Other financial liabilities (Notes 4, 9, 17, 31 and 32)			736,303				46,039
Other liabilities (Note 17)			2,678				591
Total liabilities			2,954,983				2,216,674
EQUITY (Note 19)
Capital stock			3,640,303				3,640,303
Hybrid securities			3,411,501				3,112,273
Capital surplus			10,909,281				10,909,281
Other equity			(18,508	)			(26,186	)
Retained earnings			5,973,699				5,261,231
Total equity			23,916,276				22,896,902
Total liabilities and equity			26,871,259				25,113,576

The accompanying notes are part of this interim financial statement.

 

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WOORI FINANCIAL GROUP INC.

SEPARATE INTERIM STATEMENTS OF COMPREHENSIVE INCOME

FOR THE THREE-MONTH PERIODS ENDED MARCH 31, 2023 AND 2022 (UNAUDITED)

 

		For the three-month periods ended March 31
		2023				2022
		(Korean Won in millions)
Interest income			13,706				1,772
Interest expense			(8,024	)			(7,183	)
Net interest income(expense) (Notes 9, 21 and 31)			5,682				(5,411	)
Fees and commissions income			399				326
Fees and commissions expense			(3,736	)			(2,983	)
Net fees and commissions loss (Notes 22 and 31)			(3,337	)			(2,657	)
Dividend income (Notes 23 and 31)			1,469,291				1,260,716
Net gain(loss) on financial instruments at FVTPL (Notes 9 and 24)			2,023				—
Provision of impairment losses due to credit loss (Notes 25 and 31)			(41	)			(273	)
General and administrative expenses (Notes 26 and 31)			(16,445	)			(17,730	)
Operating income			1,457,173				1,234,645
Non-operating income(expense) (Note 27)			(9	)			4
Net income before income tax expense			1,457,164				1,234,649
Income tax expense (Note 28)			(785	)			(1,259	)
Net income			1,456,379				1,233,390
Net loss on valuation of equity securities at FVTOCI			9,024				3,264
Remeasurement profit(loss) related to defined benefit plan			(1,346	)			357
Items that will not be reclassified to profit or loss:			7,678				3,621
Other comprehensive income, net of tax			7,678				3,621
Total comprehensive income			1,464,057				1,237,011
Earnings per share (Note 29)
Basic and diluted earnings per share (Unit: In Korean Won)			1,959				1,668

The accompanying notes are part of this interim financial statement.

 

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WOORI FINANCIAL GROUP INC.

SEPARATE INTERIM STATEMENTS OF CASH FLOWS

FOR THE THREE-MONTH PERIODS ENDED MARCH 31, 2023 AND 2022 (UNAUDITED)

 

		Capital stock				Capital surplus				Hybrid securities				Other equity				Retained earnings				Total equity
		(Korean Won in millions)
January 01, 2022			3,640,303				10,909,281				2,294,288				(3,874	)			4,824,991				21,664,989
Total comprehensive income
Net income			—				—				—				—				1,233,390				1,233,390
Net income on valuation of equity securities at FVTOCI			—				—				—				3,264				—				3,264
Remeasurement loss related to defined benefit plan			—				—				—				357				—				357
Transactions with owners
Dividends to common stocks			—				—				—				—				(546,044	)			(546,044	)
Issuance of hybrid securities			—				—				299,318				—				—				299,318
Dividends to hybrid securities			—				—				—				—				(19,150	)			(19,150	)
March 31, 2023 (Unaudited)			3,640,303				10,909,281				2,593,606				(253	)			5,493,187				22,636,124
January 01, 2023			3,640,303				10,909,281				3,112,273				(26,186	)			5,261,231				22,896,902
Total comprehensive income
Net income			—				—				—				—				1,456,379				1,456,379
Net income on valuation of equity securities at FVTOCI			—				—				—				9,024				—				9,024
Remeasurement gain related to defined benefit plan			—				—				—				(1,346	)			—				(1,346	)
Transactions with owners
Dividends to common stocks			—				—				—				—				(713,497	)			(713,497	)
Issuance of hybrid securities			—				—				299,228				—				—				299,228
Dividends to hybrid securities			—				—				—				—				(30,414	)			(30,414	)
March 31, 2023 (Unaudited)			3,640,303				10,909,281				3,411,501				(18,508	)			5,973,699				23,916,276

The accompanying notes are part of this interim financial statement.

 

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WOORI FINANCIAL GROUP INC.

SEPARATE INTERIM STATEMENTS OF CASH FLOWS

FOR THE THREE-MONTH PERIODS ENDED MARCH 31, 2023 AND 2022 (UNAUDITED)

 

		For the three-month periods ended March 31
		2023				2022
		(Korean Won in millions)
Cash flows from operating activities:
Net income			1,456,379				1,233,390
Adjustments to net income:
Income tax expense			785				1,259
Interest income			(13,706	)			(1,772	)
Interest expense			8,024				7,183
Dividend income			(1,469,291	)			(1,260,716	)
			(1,474,188	)			(1,254,046	)
Adjustments for profit/loss items not involving cash flows:
Provision of impairment losses due to credit loss			41				273
Loss on valuation of financial instruments at FVTPL			(2,023	)			—
Retirement benefit			907				677
Depreciation and amortization			1,785				1,492
			710				2,442
Changes in operating assets and liabilities:
Loans and other financial assets at amortized cost			265				543
Other assets			(196	)			(230	)
Net defined benefit liability			740				165
Other financial liabilities			(8,375	)			(631	)
Other liabilities			2,087				737
			(5,479	)			584
Interest income received			12,499				964
Interest expense paid			(7,843	)			(7,072	)
Dividends received			1,457,543				1,250,453
Income tax paid			(543	)			(199	)
			1,461,656				1,244,146
Net cash provided by operating activities			1,439,078				1,226,516
Cash flows from investing activities:
Net decrease(increase) on other investment assets			(170,000	)			(610,000	)
Acquisition of investments in subsidiaries			(389,254	)			(200,000	)
Acquisition of investments in financial assets at FVTOCI			—				(200,000	)
Acquisition of premises and equipment			(13	)			(2	)
Acquisition of intangible assets			(289	)			(278	)
Increase on guarantee deposits for leases			—				(142	)
			(559,556	)			(1,010,422	)
Cash flows from financing activities:
Issuance of hybrid securities			299,228				299,318
Redemption of lease liabilities			(797	)			(729	)
Dividends paid to hybrid securities			(30,414	)			(19,150	)
			268,017				279,439
Net increase in cash and cash equivalents			1,147,539				495,533
Cash and cash equivalents, beginning of the period			313,361				578,725
Cash and cash equivalents, end of the period (Note 5)			1,460,900				1,074,258

The accompanying notes are part of this interim financial statement.

 

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WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2023 AND 2022 (UNAUDITED)

 

1.

GENERAL

 

(1)	Summary of the parent company

Woori Financial Group, Inc. (hereinafter referred to as the “Company”) is primarily aimed at controlling subsidiaries that operate in the financial industry or those that are closely related to the financial industry through the ownership of shares and was established on January 11, 2019 under the Financial Holding Company Act through the comprehensive transfer with shareholders of Woori Bank, Woori FIS Co., Ltd., Woori Finance Research Institute Co., Ltd., Woori Credit Information Co., Ltd., Woori Fund Services Co., Ltd. and Woori Private Equity Asset Management Co., Ltd. The headquarters of the Company is located at 51, Sogong-ro, Jung-gu, Seoul, Korea, and the capital is 3,640,303 million Won as of March 31. The Company’s stocks were listed on the Korea Exchange on February 13, 2019, and its American Depository Shares (“ADS”) are also being traded as the underlying common stock on the New York Stock Exchange since the same date.

The details of stock between from the Company and subsidiaries as of incorporation are as follows (Unit: Number of shares):

 

Stock transfer company		Total number of issued shares				Exchange ratio per share				Number of Parent company’s stocks
Woori Bank			676,000,000				1.0000000				676,000,000
Woori FIS Co., Ltd.			4,900,000				0.2999708				1,469,857
Woori Finance Research Institute Co., Ltd.			600,000				0.1888165				113,289
Woori Credit Information Co., Ltd.			1,008,000				1.1037292				1,112,559
Woori Fund Service Co., Ltd.			2,000,000				0.4709031				941,806
Woori Private Equity Asset Management Co., Ltd.			6,000,000				0.0877992				526,795

As of August 1, 2019, the Company acquired a 73% interests in Woori Asset Management Co. (Formerly Tongyang Asset Management Corp.). The remaining payment was completed on August 1, 2019 after the request for the change of major shareholder was approved by the Financial Service Commission on December 6, 2019 and the Company gained 100% control of Woori Global Asset Management Co., Ltd. (formerly ABL Global Asset Management Co., Ltd), and added it as a consolidated subsidiary.

The Company paid 598,391 million Won in cash and 42,103,377 new shares of the parent company to acquire 100% interests of Woori Card Co., Ltd. from its subsidiary Woori Bank on September 10, 2019. On the same date, the Company also acquired 59.8% interests of Woori Investment Bank Co., Ltd. from Woori Bank with 392,795 million Won in cash.

As of December 30, 2019, the Company acquired 67.2% interests (excluding treasury stock, 51.0% in the case of including treasury stock) in Woori Asset Trust Co. (formerly Kukje Asset Trust Co.) As of March 31, 2023, it acquired an additional 28.1% interests (excluding treasury stock, 21.3% in the case of including treasury stock).

As of December 10, 2020, the Company acquired 76.8% interests (excluding treasury stock, 74% in the case of including treasury stock) in Woori Financial Capital Co., Ltd. (formerly Aju Capital Co., Ltd.). In addition, as of April 15, 2021, the Company acquired an additional 13.3% interests in Woori Financial Capital Co., Ltd. (excluding treasury stock, 12.9% in the case of including treasury stock), and as of May 24, 2021, the Company additionally acquired treasury stock held by Woori Financial Capital Additional shares (3.6%).

As of March 12, 2021, the Company paid 113,238 million Won in cash to acquire 100% interests on Woori Savings Bank from Woori Financial Capital Co., Ltd., our subsidiary.

As of August 10, 2021, the Company paid 5,792,866 new shares of the company to the shareholders of Woori Financial Capital Co., Ltd. (excluding the Company) through comprehensive stock exchange and acquired residual interests(9.5%) of Woori Financial Capital Co., Ltd., to make it a wholly owned subsidiary.

As of January 7, 2022, Woori Financial F&I Co., Ltd., an investment company for non-performing loans and restructuring companies, was established (100% stock, 200 billion won in stock payments) and incorporated as a subsidiary.

As of March 23, 2023, the Company acquired a 53.9% interests in Woori Venture Partners Co., Ltd. (formerly Daol Investment Co., Ltd.) (excluding treasury stock, 52.0% in the case of including treasury stock).

 

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WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2023 AND 2022 (UNAUDITED)

 

2.	BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES

The Company’s financial statements are condensed interim financial statements prepared in accordance with Korean IFRS 1034, Interim Financial Reporting for some of periods in which the annual separate financial statements belong. They are also separate financial statements prepared in accordance with Korean IFRS 1027 Separate Financial Statements. It is necessary to use the Company’s annual separate financial statements for the year ended December 31, 2022 for understanding of the accompanying condensed interim financial statements.

 

(1)

Except for the impacts on the newly adopted standards and interpretations explained below, the accounting policies applied in preparing the accompanying condensed interim financial statements have been applied consistently with the annual financial statements as of and for the year ended December 31, 2022.

 

1)

Amendments to K-IFRS 1001 ‘Presentation of Financial Statements and IFRS Practice Statement 2 Making Materiality Judgements’ - Disclosure of Accounting Policy

To define and disclose material accounting policies has been amended. The amendment does not have a significant impact on the financial statements.

 

2)

Amendments to K-IFRS 1008 ‘Accounting Policies, Changes in Accounting Estimates and Errors’ - Definition of Accounting Estimates

The amendments have defined accounting estimates and clarified how to distinguish them from changes in accounting policies. The amendment does not have a significant impact on the financial statements.

 

3)

Amendments to K-IFRS 1001 ‘Presentation of Financial Statements’ - Disclosure of valuation gains or losses on financial liabilities with condition to adjust exercise price

The amendments require disclosure of valuation gains or losses (limited to those recognized in the profit or loss) of the conversion options or warrants (or financial liabilities including them), if all or part of the financial instrument with exercise price that is adjusted depending on the issuer’s share price change is classified as financial liability. The amendment does not have a significant impact on the financial statements.

 

4)

Amendments to K-IFRS 1012 ‘Income Taxes’ - deferred tax related to assets and liabilities arising from a single transaction

Additional phrase ‘the temporary difference to be added and the temporary difference to be deducted do not occur in the same amount’ has been added to initial recognition exception for a transaction in which an asset or liability is initially recognized. The amendment does not have a significant impact on the financial statements.

 

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WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2023 AND 2022 (UNAUDITED)

 

(2)	The details of Korean IFRSs that have been issued and published since January 1, 2023 but have not yet reached the effective date are as follows:

 

1)

Amendments to K- IFRS 1001 ‘Presentation of Financial Statements’ – Classification of Liabilities as Current or Non-current

The amendments clarify that liabilities are classified as either current or non-current, depending on the substantive rights that exist at the end of the reporting period. Classification is unaffected by the likelihood that an entity will exercise right to defer settlement of the liability or the expectations of management. Also, the settlement of liability includes the transfer of the entity’s own equity instruments, however, it would be excluded if an option to settle them by the entity’s own equity instruments if compound financial instruments is met the definition of equity instruments and recognized separately from the liability. The amendments should be applied for annual periods beginning on or after January 1, 2024, and earlier application is permitted. The Company does not expect that these amendments have a significant impact on the financial statements.

The above enacted or amended standards will not have a significant impact on the Company.

 

(3)	Significant accounting policies and method of computation used in the preparation of the condensed interim financial statements are consistent with those of the annual financial statements for the year ended December 31, 2022, except for the one described below.

 

•

Income tax expense

Interim period corporate tax expense is calculated by applying the estimated average annual corporate tax rate to the interim period’s pre-tax profit, which is applicable to expected gross annual income.

 

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WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2023 AND 2022 (UNAUDITED)

 

3.	SIGNIFICANT ACCOUNTING ESTIMATES AND ASSUMPTIONS

The management shall make judgements, estimates and assumptions that affect the application of accounting policies and application of assets, liabilities and revenues and expenses in preparing condensed interim financial statements. Therefore, the actual results may differ from these estimates.

The important judgements by the management on accounting policies and the main sources of estimation uncertainty for preparing condensed interim financial statements are identical to ones used in the Company’s annual separate financial statements for the year ended December 31, 2022.

 

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WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2023 AND 2022 (UNAUDITED)

 

4.	RISK MANAGEMENT

The Company is exposed to various risks that may arise from its operating activities and credit risk, market risk and liquidity risk are the main types of risks. In order to manage such risks, the Risk Management Committee analyzes, assesses, and establishes risk management standards, including policies, guidelines, management systems and decision-making to ensure sound management of the Company.

The Risk Management Committee, Chief Risk Officer (“CRO”) and the Risk Management Department are operated as risk management organizations. The board of directors operates the Risk Management Committee, composed of nonexecutive directors for professional risk management. The Risk Management Committee performs as the top decision-making body for risk management by establishing fundamental risk management policies that are consistent with the Company’s management strategy and by determining the Company’s acceptable level of risk.

CRO assists the Risk Management Committee and operates the Company Risk Management Council, which is composed of the risk management managers of the subsidiaries, to periodically check and improve the external environment and the Company’s risk burden. The Risk Management Department which is independently structured, controls the risk management matter of the Company and reports key risks and assists decision-making.

 

(1)	Credit risk

Credit risk represents the possibility of financial losses incurred when the counterparty fails to fulfill its contractual obligations. The goal of credit risk management is to maintain the Company’s credit risk exposure to a permissible degree and to optimize its rate of return considering such credit risk.

 

1)

Credit risk management

The Company measures expected loss on assets subject to credit risk management and uses it as a management indicator.

 

2)

Maximum exposure

The maximum exposure to credit risk is as follows (Unit: Korean Won in millions):

 

				March 31, 2023				December 31, 2022
Loans and other financial assets at amortized cost (*)		Banks			2,152,511				1,946,609
		Corporates			117,058				95,268
		Sub-total			2,269,569				2,041,877
Financial assets at FVTPL		Derivative assets			—				689
Total					2,269,569				2,042,566

 

(*)

Cash and cash equivalents are not included.

 

a)

Credit risk exposure by geographical areas

The following tables analyze credit risk exposure by geographical areas (Unit: Korean Won in millions):

 

		March 31, 2023				December 31, 2022
		Korea				Korea
Loans and other financial assets at amortized cost			2,269,569				2,041,877
Financial assets at FVTPL			—				689
Total			2,269,569				2,042,566

 

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WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2023 AND 2022 (UNAUDITED)

 

b)

Credit risk exposure by industries

The following tables analyze credit risk exposure by industries, which are finance and insurance, and others in accordance with the Korea Standard Industrial Classification Code as of March 31, 2023 and December 31, 2022 (Unit: Korean Won in millions):

 

		March 31, 2023
		Finance and insurance				Others				Total
Loans and other financial assets at amortized cost			2,266,643				2,926				2,269,569
Total			2,266,643				2,926				2,269,569

 

		December 31, 2022
		Finance and insurance				Others				Total
Loans and other financial assets at amortized cost			2,039,388				2,489				2,041,877
Financial assets at FVTPL			689				—				689
Total			2,040,077				2,489				2,042,566

 

3)

Credit risk exposure

The maximum exposure to credit risk by asset quality, except for financial assets at FVTPL as of March 31, 2023 and December 31, 2022 is as follows (Unit: Korean Won in millions):

 

		March 31, 2023
		Stage 1								Stage 2								Stage 3				Total				Loss allowance				Total, net
Financial assets		Above appropriate credit rating (*1)				Less than a limited credit rating (*2)				Above appropriate credit rating (*1)				Less than a limited credit rating (*2)
Loans and other financial assets at amortized cost			2,269,925				—				—				—				—				2,269,925				(356	)			2,269,569
Banks			2,152,868				—				—				—				—				2,152,868				(356	)			2,152,512
Corporates			117,057				—				—				—				—				117,057				—				117,057
General business			117,057				—				—				—				—				117,057				—				117,057
Total			2,269,925				—				—				—				—				2,269,925				(356	)			2,269,569

 

(*1)	Credit grade of corporates are AAA ~ BBB.

(*2)	Credit grade of corporates are BBB- ~ C.

 

		December 31, 2022
		Stage 1								Stage 2								Stage 3				Total				Loss allowance				Total, net
Financial assets		Above appropriate credit rating (*1)				Less than a limited credit rating (*2)				Above appropriate credit rating (*1)				Less than a limited credit rating (*2)
Loans and other financial assets at amortized cost			2,042,192				—				—				—				—				2,042,192				(315	)			2,041,877
Banks			1,946,924				—				—				—				—				1,946,924				(315	)			1,946,609
Corporates			95,268				—				—				—				—				95,268				—				95,268
General business			95,268				—				—				—				—				95,268				—				95,268
Total			2,042,192				—				—				—				—				2,042,192				(315	)			2,041,877

 

(*1)	Credit grade of corporates are AAA ~ BBB.

(*2)	Credit grade of corporates are BBB- ~ C.

 

- 13 -

WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2023 AND 2022 (UNAUDITED)

 

(2)	Market risk

Market risk is the possible risk of loss arising from trading position and non-trading position as a result of the volatility of market factors such as interest rates, stock prices and foreign exchange rates, and the Company’s main market risk is interest rate risk.

The Company estimates and manages risks related to changes in interest rate due to the difference in the maturities of interest-bearing assets and liabilities and discrepancies in the terms of interest rates. Cash flows (both principal and interest), interest bearing assets and liabilities, presented by each re-pricing date, are as follows (Unit: Korean Won in millions):

 

		March 31, 2023
		Within 3 months (*1)				4 to 6 months				7 to 9 months				10 to 12 months				1 to 5 years				Over 5 years				Total
Asset:
Loans and other financial assets at amortized cost (*1)			2,086,888				872,225				—				—				—				—				2,959,113
Financial assets at FVTOCI (*2)			—				—				—				—				—				325,083				325,083
Sub-total			2,086,888				872,225				—				—				—				325,083				3,284,196
Liability:
Debentures			7,843				267,698				7,012				7,012				380,437				943,992				1,613,994
		December 31, 2022
		Within 3 months (*1)				4 to 6 months				7 to 9 months				10 to 12 months				1 to 5 years				Over 5 years				Total
Asset:
Loans and other financial assets at amortized cost (*1)			315,632				406,445				913,995				—				—				—				1,636,072
Financial assets at FVTOCI (*2)			—				—				—				—				—				312,771				312,771
Sub-total			315,632				406,445				913,995				—				—				312,771				1,948,843
Liability:
Debentures			7,843				7,843				267,698				7,011				382,167				949,275				1,621,837

 

(*1)	The principal and interest cash flows of cash and cash equivalents are included in the cash flows within three months, with 2,086,888 million Won and 315,632 million Won as of March 31, 2023 and December 31, 2022, respectively.

(*2)	Due to the uncertain timing of the sale, it is included in the section for over 5 years in accordance with the expiration of the remaining contract

 

- 14 -

WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2023 AND 2022 (UNAUDITED)

 

(3)	Liquidity risk

Liquidity risk refers to the risk that the Company may encounter difficulties in meeting obligations from its financial liabilities.

 

1)

Liquidity risk management

Liquidity risk management is to prevent damages from potential liquidity shortages with effective risk management that could arise from mismatching the assets and liabilities or unexpected cash outflows. The financial liabilities in the statement of financial position that are relevant to liquidity risk are incorporated within the scope of risk management.

The Company manages liquidity risk by identifying the maturity gap and such gap ratio through various cash flows analysis (i.e. based on remaining maturity and contract period, etc.).

 

2)

Maturity analysis of non-derivative financial liabilities

 

a)

Cash flows of principals and interests by remaining contractual maturities of non-derivative financial liabilities are as follows (Unit: Korean Won in millions):

 

		March 31, 2023
		Within 3 months				4 to 6 months				7 to 9 months				10 to 12 months				1 to 5 years				Over 5 years				Total
Debentures			7,843				267,698				7,012				7,012				380,437				943,992				1,613,994
Lease liabilities			777				774				772				757				2,380				—				5,460
Other financial liabilities (*)			719,942				233				726				233				9,942				—				731,076
Total			728,562				268,705				8,510				8,002				392,759				943,992				2,350,530

 

(*)	It does not include lease liabilities.

 

		December 31, 2022
		Within 3 months				4 to 6 months				7 to 9 months				10 to 12 months				1 to 5 years				Over 5 years				Total
Debentures			7,843				7,843				267,698				7,011				382,167				949,275				1,621,837
Lease liabilities			797				770				767				764				3,070				—				6,168
Other financial liabilities (*)			10,720				21,087				—				348				8,000				—				40,155
Total			19,360				29,700				268,465				8,123				393,237				949,275				1,668,160

 

(*)	It does not include lease liabilities.

 

- 15 -

WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2023 AND 2022 (UNAUDITED)

 

b)

Cash flows of principals and interests by expected maturities of non-derivative financial liabilities are as follows (Unit: Korean Won in millions):

 

		March 31, 2023
		Within 3 months				4 to 6 months				7 to 9 months				10 to 12 months				1 to 5 years				Over 5 years				Total
Debentures			7,843				267,698				7,012				7,012				380,437				943,992				1,613,994
Lease liabilities			777				774				772				757				2,380				—				5,460
Other financial liabilities (*)			719,942				233				726				233				9,942				—				731,076
Total			728,562				268,705				8,510				8,002				392,759				943,992				2,350,530

 

(*)	It does not include lease liabilities.

 

		December 31, 2022
		Within 3 months				4 to 6 months				7 to 9 months				10 to 12 months				1 to 5 years				Over 5 years				Total
Debentures			7,843				7,843				267,698				7,011				382,167				949,275				1,621,837
Lease liabilities			797				770				767				764				3,070				—				6,168
Other financial liabilities (*)			10,720				21,087				—				348				8,000				—				40,155
Total			19,360				29,700				268,465				8,123				393,237				949,275				1,668,160

 

(*)	It does not include lease liabilities.

 

3)

Maturity analysis of derivative financial liabilities.

There are no fair value measured derivative financial liabilities as of March 31, 2023 and December 31, 2022.

 

5.	STATEMENTS OF CASH FLOWS

 

(1)	Details of cash and cash equivalents are as follows (Unit: Korean Won in millions):

 

		March 31, 2023				December 31, 2022
Demand deposits			745,900				18,361
Fixed deposits			715,000				295,000
Total			1,460,900				313,361

 

(2)	Significant transactions of investing activities and financing activities not involving cash inflows and outflows are as follows (Unit: Korean Won in millions):

 

		For the three-month periods ended March 31
		2023				2022
Changes in unpaid dividends on common stocks			713,497				546,044
Changes in other comprehensive income related to valuation of financial assets at FVTOCI			9,024				3,264
Changes in right-of-use assets due to new contract			82				675
Changes in lease liabilities due to new contract			82				584

 

- 16 -

WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2023 AND 2022 (UNAUDITED)

 

6.	FINANCIAL ASSETS AT FVTPL

 

(1)	Details of financial assets at FVTPL as of March 31, 2023 and December 31, 2022 are as follows (Unit: Korean Won in millions):

 

		March 31, 2023				December 31, 2022
Financial assets at FVTPL mandatorily measured at fair value			—				689

 

(2)	Financial assets at FVTPL mandatorily measured at fair value are as follows (Unit: Korean Won in millions):

 

		March 31, 2023				December 31, 2022
Derivatives assets			—				689

 

(3)	Financial assets at FVTPL designated as upon initial recognition is nil among financial assets at FVTPL as of March 31, 2023 and December 31, 2022.

 

7.	FINANCIAL ASSETS AT FVTOCI

 

(1)	Details of financial assets at FVTOCI as of March 31, 2023 and December 31, 2022 are as follows (Unit: Korean Won in millions):

 

		March 31, 2023				December 31, 2022
Hybrid securities			325,083				312,771

 

(2)	Details of equity securities designated as financial assets at FVTOCI as of March 31, 2023 and December 31, 2022 are as follows (Unit: Korean Won in millions):

 

Purpose of acquisition		March 31, 2023				December 31, 2022
Investment for political purpose			325,083				312,771

 

8.	LOANS AND OTHER FINANCIAL ASSETS AT AMORTIZED COST

 

(1)	Details of loans and other financial assets at amortized cost as of March 31, 2023 and December 31, 2022 are as follows (Unit: Korean Won in millions):

 

		March 31, 2023				December 31, 2022
Due from banks			1,469,647				1,299,687
Other financial assets			799,922				742,190
Total			2,269,569				2,041,877

 

(2)	Details of due from banks are as follows (Unit: Korean Won in millions):

 

		March 31, 2023				December 31, 2022
Due from banks in local currency:
Due from depository banks			1,470,000				1,300,000
Loss allowance			(353	)			(313	)
Total			1,469,647				1,299,687

 

- 17 -

WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2023 AND 2022 (UNAUDITED)

 

(3)	Changes in the allowance for credit losses and gross carrying amount of due from banks are as follows (Unit: Korean Won in millions):

 

1)

Allowance for credit losses

 

		For the three-month period ended March 31, 2023
		Stage 1				Stage 2				Stage 3				Total
Beginning balance			(313	)			—				—				(313	)
Provision of allowance for credit loss			(40	)			—				—				(40	)
Ending balance			(353	)			—				—				(353	)

 

		For the three-month period ended March 31, 2022
		Stage 1				Stage 2				Stage 3				Total
Beginning balance			(72	)			—				—				(72	)
Provision of allowance for credit loss			(273	)			—				—				(273	)
Ending balance			(345	)			—				—				(345	)

 

2)

Gross carrying amount

 

		For the three-month period ended March 31, 2023
		Stage 1				Stage 2				Stage 3				Total
Beginning balance			1,300,000				—				—				1,300,000
Net increase(decrease)			170,000				—				—				170,000
Ending balance			1,470,000				—				—				1,470,000

 

		For the three-month period ended March 31, 2022
		Stage 1				Stage 2				Stage 3				Total
Beginning balance			160,000				—				—				160,000
Net increase(decrease)			610,000				—				—				610,000
Ending balance			770,000				—				—				770,000

 

(4)	Details of other financial assets are as follows (Unit: Korean Won in millions):

 

		March 31, 2023				December 31, 2022
Receivables			770,076				724,101
Accrued income			27,730				15,991
Lease deposits			2,119				2,101
Loss allowance			(3	)			(3	)
Total			799,922				742,190

 

- 18 -

WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2023 AND 2022 (UNAUDITED)

 

(5)	Changes in the allowances for credit losses and gross carrying amount of other financial assets are as follows (Unit: Korean Won in millions).

 

1)

Allowance for credit losses

 

		For the three-month period ended March 31, 2023
		Stage 1				Stage 2				Stage 3				Total
Beginning balance			(3	)			—				—				(3	)
Provision of allowance for credit loss			—				—				—				—
Ending balance			(3	)			—				—				(3	)

 

For the three-month period ended March 31, 2022

Stage 1

Stage 2

Stage 3

Total

Beginning balance

—

—

—

—

Reversal of allowance for credit loss

—

—

—

—

Ending balance

—

—

—

—

 

2)

Gross carrying amount

 

		For the three-month period ended March 31, 2023
		Stage 1				Stage 2				Stage 3				Total
Beginning balance			742,193				—				—				742,193
Net increase(decrease)			57,732				—				—				57,732
Ending balance			799,925				—				—				799,925

 

		For the three-month period ended March 31, 2022
		Stage 1				Stage 2				Stage 3				Total
Beginning balance			473,182				—				—				473,182
Net increase(decrease)			287,503				—				—				287,503
Ending balance			760,685				—				—				760,685

 

- 19 -

WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2023 AND 2022 (UNAUDITED)

 

9.	FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES

 

(1)	The fair value hierarchy

The fair value hierarchy is determined by the levels of judgment involved in estimating fair values of financial assets and liabilities. The specific financial instruments characteristics and market condition such as volume of transactions and transparency are reflected to the market observable inputs. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities. The Company maximizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value of its financial assets and financial liabilities. Fair value is measured based on the perspective of a market participant. As such, even when market assumptions are not readily available, the Company’s own assumptions reflect those that market participants would use for measuring the assets or liabilities at the measurement date.

The fair value measurement is described in the one of the following three levels used to classify fair value measurements:

 

•

Level 1—fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities. The types of financial assets or liabilities generally included in Level 1 are publicly traded equity securities, derivatives, and debt securities issued by governmental bodies.

 

•

Level 2—fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. prices) or indirectly (i.e. derived from prices). The types of financial assets or liabilities generally included in Level 2 are debt securities not traded in active markets and derivatives traded in OTC but not required significant judgment.

 

•

Level 3—fair value measurements are those derived from valuation technique that include inputs for the assets or liabilities that are not based on observable market data (unobservable inputs). The types of financial assets or liabilities generally included in Level 3 are non-public securities and derivatives and debt securities of which valuation techniques require significant judgments and subjectivity.

The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to a fair value measurement in its entirety requires judgment and consideration of inherent factors of the asset or liability.

 

(2)	Fair value hierarchy of financial assets and liabilities measured at fair value are as follows (Unit: Korean Won in millions):

 

		March 31, 2023
		Level 1				Level 2				Level 3				Total
Financial assets:
Financial assets at FVTPL
Derivative assets			—				—				—				—
Financial assets at FVTOCI
Hybrid securities			—				—				325,083				325,083

 

		December 31, 2022
		Level 1				Level 2				Level 3				Total
Financial assets:
Financial assets at FVTPL
Derivative assets			—				—				689				689
Financial assets at FVTOCI
Hybrid securities			—				—				312,771				312,771

Financial assets measured at FVTPL and financial assets measured at FVTOCI are recognized at fair value. Fair value is the amount that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date.

 

- 20 -