Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2023

Disclosure of detailed information about intangible assets [abstract]

(1)	Details of intangible assets are as follows (Unit: Korean Won in millions):


	December 31, 2022
	Goodwill		Industrial property rights			Development cost			Other intangible assets			Membership deposit			Construction in progress		Total
Acquisition cost		397,527		2,219			754,031			1,244,516			46,231			3,027		2,447,551
Accumulated amortization		—		(1,576	)		(541,404	)		(1,018,591	)		—			—		(1,561,571	)
Accumulated impairment losses		—		—			—			(33,552	)		(3,314	)		—		(36,866	)

Net carrying value		397,527		643			212,627			192,373			42,917			3,027		849,114


	December 31, 2023
	Goodwill		Industrial property rights			Development cost			Other intangible assets			Membership deposit			Construction in progress		Total
Acquisition cost		445,093		2,292			859,678			1,388,397			50,857			8,142		2,754,459
Accumulated amortization		—		(1,783	)		(617,587	)		(1,101,688	)		—			—		(1,721,058	)
Accumulated impairment losses		—		—			—			(33,553	)		(3,006	)		—		(36,559	)

Net carrying value		445,093		509			242,091			253,156			47,851			8,142		996,842

Changes In Intangible Assets

(2)	Details of changes in intangible assets are as follows (Unit: Korean Won in millions):


	For the year ended December 31, 2021
	Goodwill		Industrial property rights			Development cost			Other intangible assets			Membership deposit			Construction in progress			Total
Beginning balance		334,290		709			208,873			205,445			36,091			6,669			792,077
Acquisitions		—		247			74,444			49,137			2,437			977			127,242
Disposal		—		—			—			—			(347	)		—			(347	)
Amortization (*)		—		(233	)		(80,128	)		(68,950	)		—			—			(149,311	)
Impairment losses		—		—			—			(18	)		(93	)		—			(111	)
Transfer		—		—			4,518			2,946			—			(7,464	)		—
Foreign currencies translation adjustments		11,159		—			—			2,952			232			—			14,343
Others		—		—			1			1,670			(713	)		535			1,493

Ending balance		345,449		723			207,708			193,182			37,607			717			785,386

(*)	Amortization of other intangible assets amounting to 13,963 million Won is included in other operating expenses.


	For the year ended December 31, 2022
	Goodwill			Industrial property rights			Development cost			Other intangible assets			Membership deposit			Construction in progress			Total
Beginning balance		345,449			723			207,708			193,182			37,607			717			785,386
Acquisitions		—			162			91,992			62,073			6,571			2,421			163,219
Disposal		—			—			—			(2	)		(1,295	)		—			(1,297	)
Amortization (*)		—			(242	)		(87,294	)		(75,299	)		—			—			(162,835	)
Impairment losses		—			—			—			—			88			—			88
Transfer		—			—			300			182			—			(482	)		—
Business combination		57,670			—			—			7,795			—			—			65,465
Foreign currencies translation adjustments		(5,592	)		—			(5	)		(865	)		(42	)		(53	)		(6,557	)
Others		—			—			(74	)		5,307			(12	)		424			5,645

Ending balance		397,527			643			212,627			192,373			42,917			3,027			849,114

(*)	Amortization of other intangible assets amounting to 14,664 million Won is included in other operating expenses.


	For the year ended December 31, 2023
	Goodwill		Industrial property rights			Development cost			Other intangible assets			Membership deposit			Construction in progress			Total
Beginning balance		397,527		643			212,627			192,373			42,917			3,027			849,114
Acquisitions		—		72			105,596			125,509			4,000			7,612			242,789
Disposal		—		—			—			(1,028	)		(1,290	)		—			(2,318	)
Amortization (*)		—		(206	)		(76,192	)		(84,556	)		—			—			(160,954	)
Reversal of impairment losses		—		—			—			—			37			—			37
Transfer		—		—			61			650			(392	)		(350	)		(31	)
Business combination		41,527		—			—			18,882			2,565			—			62,974
Foreign currencies translation adjustments		6,039		—			(1	)		854			4			(28	)		6,868
Others		—		—			—			472			10			(2,119	)		(1,637	)

Ending balance		445,093		509			242,091			253,156			47,851			8,142			996,842

(*)	Amortization of other intangible assets amounting to 22,349 million Won is included in other operating expenses.

Details Of Allocated Goodwill Based On Each Cash-generating Unit

1)	Details of allocated goodwill based on each cash-generating unit as of December 31, 2022 and 2023 are as follows (Unit: Korean Won in millions):


Cash-generating unit (*1)	December 31, 2022		December 31, 2023
Woori Asset Management Corp.		43,036		43,036
Woori Global Asset Management Co., Ltd.		2,030		2,030
Woori Asset Trust Co., Ltd.		141,780		141,780
Woori Venture Partners Co., Ltd.		—		41,527
PT Bank Woori Saudara Indonesia 1906 Tbk (*2)		97,029		100,267
WOORI BANK (CAMBODIA) PLC (*3)		55,570		56,513
PT Woori Finance Indonesia Tbk. (*4)		51,382		53,097
Others		6,700		6,843

Total		397,527		445,093

(*1)	Allocated to the cash-generating unit that will benefit from the synergy effect of the business combination, and the cash-generating unit is generally comprised of the operating segment or sub-sectors.

(*2)	The Group has acquired Saudara Bank to expand retail sales in Indonesia and recognized the goodwill as it is expected to strengthen the competitiveness by securing a local sales network in Indonesia.

(*3)	The Group has acquired VisionFund Cambodia to expand Cambodian retail sales, and recognized goodwill based on the economies of scale and acquired customer base.

(*4)	The Group has acquired PT Batavia Prosperindo Finance Tbk to expand installment finance business in Indonesia, and recognized the goodwill as it is expected to strengthen the competitiveness and existing customer relationships by securing sales network of used cars in Indonesia.

Impairment Test Of Allocated Goodwill Based On Each Cash-generating Unit

2)	Impairment test

The recoverable amount of the cash-generating unit is measured at larger amount among the fair value less costs to sell or the value to use.

The net fair value is calculated by deducting costs of disposal from the amount received from the sale of the cash-generating unit in an arm’s length transaction between the parties with reasonable judgment and willingness to negotiate. In case of difficulty in measuring this amount, the sale amount of a similar cash-generating unit in the past market is calculated by reflecting the characteristics of the cash-generating unit. If reliable information related to fair value less costs to sell is not available, value in use is considered as recoverable amount. Value in use is the present value of future cash flows expected to be generated by the cash-generating unit. Future cash flows are estimated based on the latest financial budget approved by the management, with an estimated period of up to five years. The Group applied 1.0% - 4.3% growth rate to estimate future cash flow for the period over five years. The main assumptions used to estimate cash flows are about the size of the market and the share of the group. The appropriate discount rate for discounting future cash flows is the

pre-tax

discount rate, including assumptions about risk-free interest rates, market risk premium, and systemic risk of cash-generating units. The impairment test, which compares the carrying amount and recoverable amount of the cash-generating unit to which goodwill has been allocated, is conducted every year and every time an impairment sign occurs.

(Unit: %, Korean Won in millions)


Category	Woori Asset Trust Co., Ltd.		Woori Asset Management Corp. (*)		Woori Venture Partners Co., Ltd.		PT Bank Woori Saudara Indonesia 1906 Tbk		WOORI BANK (CAMBODIA) PLC		PT Woori Finance Indonesia Tbk
Discount rate (%)		16.61		16.44		16.93		11.39		17.72		15.33
Terminal growth rate (%)		1.0		1.0		1.0		1.0		1.0		4.3
Recoverable amount		439,760		186,709		275,795		979,387		586,446		159,255
Carrying amount		414,455		160,596		221,248		740,558		509,730		120,355

(*)	The Group conducted a consolidated impairment test on the goodwill of Woori Asset Management and Woori Global Asset Management, which are scheduled to merge in January 2024.

As a result of the impairment test on goodwill, it is determined that the carrying amount of the cash-generating unit to which the goodwill has been allocated will not exceed the recoverable amount.

Sensitivity Of The Fair Value Measurement To Changes In Significant But Unobservable Inputs Used In Measuring Fair Value

3)	Sensitivity analysis

The sensitivity of the fair value measurement to changes in significant but unobservable inputs used in measuring fair value is as follows (Unit: Korean Won in millions):


Category		Woori Asset Trust Co., Ltd.			Woori Asset Management Corp.			Woori Venture Partners Co., Ltd.			PT Bank Woori Saudara Indonesia 1906 Tbk			WOORI BANK (CAMBODIA) PLC			PT Woori Finance Indonesia Tbk
Discount rate (%).	Increase by 1.0% point		(33,658	)		(7,931	)		(32,715	)		(95,630	)		(47,185	)		(14,150	)
Discount rate (%).	Decrease by 1.0% point		40,101			9,343			38,927			116,564			53,812			17,719
Terminal growth rate (%)	Increase by 1.0% point		23,853			5,217			24,520			47,933			9,762			13,470
Terminal growth rate (%)	Decrease by 1.0% point		(20,274	)		(4,451	)		(20,874	)		(39,513	)		(8,659	)		(10,734	)