Exhibit 99.2

KB Financial Group Inc.

Separate Interim Financial Statements

September 30, 2020

(Unaudited)

(With Independent Auditors’ Review Report Thereon)

Contents

	Page
Independent Auditors’ Review Report		1
Separate Interim Statements of Financial Position		3
Separate Interim Statements of Comprehensive Income		4
Separate Interim Statements of Changes in Equity		5
Separate Interim Statements of Cash Flows		6
Notes to the Separate Interim Financial Statements		7 - 55

Independent Auditors’ Review Report

Based on a report originally issued in Korean

The Board of Directors and Stockholders

KB Financial Group Inc.:

Reviewed financial statements

We have reviewed the accompanying condensed separate interim financial statements of KB Financial Group Inc. (the “Company”), which comprise the separate interim statement of financial position as of September 30, 2020, the separate interim statements of comprehensive income for the three-month and nine-month periods ended September 30, 2020, changes in equity and cash flows for the nine-month period ended September 30, 2020 and notes, comprising a summary of significant accounting policies 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.

Auditors’ review responsibility

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

We conducted our review 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 that 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.

Emphasis of matter

The following matter may be helpful to the readers in their understanding of the condensed separate interim financial statements. Our review conclusion is not affected by this matter.

As described in Note 29.2 to the condensed separate interim financial statements, the ongoing COVID-19 pandemic has increased the estimation uncertainty on the Company’s expected credit losses on certain portfolios and potential impairment on assets and may have negative impacts on the Company’s separate interim financial statements.

1

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 separate interim statements of comprehensive income for the three-month and nine-month periods ended September 30, 2019, changes in equity and cash flows for the nine-month period ended September 30, 2019, were reviewed by other auditors whose report thereon, dated November 14, 2019, expressed that nothing came to their attention that caused them to believe that those 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, 2019, and the related separate statements of comprehensive income, changes in equity and cash flows for the year then ended, which are not accompanying this report, were audited by other auditors in accordance with Korean Standards on Auditing and their report thereon, dated March 5, 2020, expressed an unqualified opinion. The accompanying separate statement of financial position of the Company as of December 31, 2019, 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

November 16, 2020

This report is effective as of November 16, 2020, 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.

2

KB Financial Group Inc.

Separate Interim Statements of Financial Position

September 30, 2020 and December 31, 2019

(In millions of Korean won)

	Notes		September 30, 2020 (Unaudited)			December 31, 2019
Assets
Cash and due from financial institutions		4,5,6,28	W	44,239		W	18,537
Financial assets at fair value through profit or loss		4,5,7		466,575			413,909
Loans at amortized cost		4,5,8		180,000			120,000
Investments in subsidiaries		9		26,522,170			24,162,116
Property and equipment		10		4,005			4,170
Intangible assets		11		12,021			11,092
Deferred income tax assets		12		2,609			7,526
Other assets		4,5,13		795,750			609,286
Total assets			W	28,027,369		W	25,346,636
Liabilities
Debts		4,5,14	W	340,000		W	—
Debentures		4,5,15		6,316,734			5,543,446
Net defined benefit liabilities		16		2,040			437
Current income tax liabilities				648,398			417,414
Other liabilities		4,5,17		166,675			203,440
Total liabilities				7,473,847			6,164,737
Equity
Share capital		18		2,090,558			2,090,558
Hybrid securities		18		1,197,017			399,085
Capital surplus		18		14,754,747			14,742,814
Accumulated other comprehensive income		18		(7,693	)		(7,664	)
Retained earnings		18		3,655,081			3,093,294
Treasury shares		18		(1,136,188	)		(1,136,188	)
Total equity				20,553,522			19,181,899
Total liabilities and equity			W	28,027,369		W	25,346,636

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

3

KB Financial Group Inc.

Separate Interim Statements of Comprehensive Income

Three-Month and Nine-Month Periods Ended September 30, 2020 and 2019

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

		2020						2019
	Notes	(Unaudited)						(Unaudited)
		Three months			Nine months			Three months			Nine months
Interest income		W	2,606		W	6,684		W	1,151		W	6,472
Interest expense			(34,275	)		(98,724	)		(30,483	)		(95,229	)
Net interest expense	20		(31,669	)		(92,040	)		(29,332	)		(88,757	)
Fee and commission income			168			546			214			564
Fee and commission expense			(2,916	)		(7,113	)		(1,418	)		(4,636	)
Net fee and commission expense	21		(2,748	)		(6,567	)		(1,204	)		(4,072	)
Net gains on financial assets at fair value through profit or loss	22		4,028			10,360			3,527			13,292
Net other operating income	23		598,598			1,573,528			—			926,934
General and administrative expenses	24		(17,866	)		(49,332	)		(16,412	)		(47,354	)
Operating profit (loss) before provision for credit losses			550,343			1,435,949			(43,421	)		800,043
Provision for credit losses			—			—			—			—
Operating profit (loss)			550,343			1,435,949			(43,421	)		800,043
Net non-operating income (expenses)	25		264			426			(403	)		(451	)
Profit (loss) before income tax			550,607			1,436,375			(43,824	)		799,592
Income tax expense (benefit)	26		5,344			(403	)		619			(847	)
Profit (loss) for the period			555,951			1,435,972			(43,205	)		798,745
Items that will not be reclassified to profit or loss:
Remeasurements of net defined benefit liabilities			9			(29	)		(20	)		(61	)
Other comprehensive income (loss) for the period, net of tax			9			(29	)		(20	)		(61	)
Total comprehensive income (loss) for the period		W	555,960		W	1,435,943		W	(43,225	)	W	798,684
Earnings (loss) per share	27
Basic earnings (loss) per share		W	1,410		W	3,652		W	(119	)	W	2,031
Diluted earnings (loss) per share			1,393			3,616			(119	)		2,017

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

4

KB Financial Group Inc.

Separate Interim Statements of Changes in Equity

Nine-Month Periods Ended September 30, 2020 and 2019

(In millions of Korean won)	Share Capital		Hybrid Securities		Capital Surplus		Accumulated Other Comprehensive Income			Retained Earnings			Treasury Shares			Total Equity
Balance at January 1, 2019	W	2,090,558	W	—	W	14,742,814	W	(7,144	)	W	3,213,556		W	(968,549	)	W	19,071,235
Comprehensive income
Profit for the period		—		—		—		—			798,745			—			798,745
Remeasurements of net defined benefit liabilities		—		—		—		(61	)		—			—			(61	)
Total comprehensive income		—		—		—		(61	)		798,745			—			798,684
Transactions with shareholders
Annual dividends		—		—		—		—			(759,736	)		—			(759,736	)
Acquisition of treasury shares		—		—		—		—			—			(267,639	)		(267,639	)
Issuance of hybrid securities		—		399,085		—		—			—			—			399,085
Dividends on hybrid securities		—		—		—		—			(3,257	)		—			(3,257	)
Total transactions with shareholders		—		399,085		—		—			(762,993	)		(267,639	)		(631,547	)
Balance at September 30, 2019 (Unaudited)	W	2,090,558	W	399,085	W	14,742,814	W	(7,205	)	W	3,249,308		W	(1,236,188	)	W	19,238,372
Balance at January 1, 2020	W	2,090,558	W	399,085	W	14,742,814	W	(7,664	)	W	3,093,294		W	(1,136,188	)	W	19,181,899
Comprehensive income
Profit for the period		—		—		—		—			1,435,972			—			1,435,972
Remeasurements of net defined benefit liabilities		—		—		—		(29	)		—			—			(29	)
Total comprehensive income		—		—		—		(29	)		1,435,972			—			1,435,943
Transactions with shareholders
Annual dividends		—		—		—		—			(861,092	)		—			(861,092	)
Consideration for exchangeable rights		—		—		11,933		—			—			—			11,933
Issuance of hybrid securities		—		797,932		—		—			—			—			797,932
Dividends on hybrid securities		—		—		—		—			(13,093	)		—			(13,093	)
Total transactions with shareholders		—		797,932		11,933		—			(874,185	)		—			(64,320	)
Balance at September 30, 2020 (Unaudited)	W	2,090,558	W	1,197,017	W	14,754,747	W	(7,693	)	W	3,655,081		W	(1,136,188	)	W	20,553,522

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

5

KB Financial Group Inc.

Separate Interim Statements of Cash Flows

Nine-Month Periods Ended September 30, 2020 and 2019

(In millions of Korean won)

			2020			2019
	Notes		(Unaudited)			(Unaudited)
Cash flows from operating activities
Profit for the period			W	1,435,972		W	798,745
Adjustment for non-cash items
Depreciation and amortization				2,921			3,737
Share-based payments				1,243			2,052
Net interest expense				2,358			2,890
Net losses (gains) on valuation on financial assets at fair value through profit or loss				242			(3,099	)
Gain on foreign currency translation				(117	)		—
Net other expenses				(3,804	)		1,691
				2,843			7,271
Changes in operating assets and liabilities
Deferred income tax assets				4,929			824
Other assets				(678	)		(716	)
Other liabilities				9,006			(3,336	)
				13,257			(3,228	)
Net cash inflow from operating activities				1,452,072			802,788
Cash flows from investing activities
Acquisition of financial assets at fair value through profit or loss				(4,212,551	)		(2,020,000	)
Disposal of financial assets at fair value through profit of loss				4,159,644			1,997,807
Acquisition of investments in subsidiaries				(2,347,543	)		(100,000	)
Increase in loans at amortized cost				(60,000	)		(70,000	)
Acquisition of property and equipment				(709	)		(4,097	)
Disposal of property and equipment				—			14
Acquisition of intangible assets				(903	)		(842	)
Disposal of intangible assets				—			41
Net decrease(increase) in guarantee deposits paid				(12,678	)		(1,515	)
Other investing activities				(2,172	)		(175	)
Net cash outflow from investing activities				(2,476,912	)		(198,767	)
Cash flows from financing activities
Increase in debts				340,000			418,705
Decrease in debts				—			(717,026	)
Increase in debentures				1,477,211			818,087
Decrease in debentures				(690,000	)		(818,252	)
Dividends paid to shareholders				(861,092	)		(762,993	)
Principal elements of lease payments				(416	)		(412	)
Acquisition of treasury shares				—			(274,317	)
Issuance of hybrid securities				797,932			399,085
Dividends paid on hybrid securities				(13,093	)		—
Net cash inflow (outflow) from financing activities				1,050,542			(937,123	)
Net increase (decrease) in cash and cash equivalents				25,702			(333,102	)
Cash and cash equivalents at the beginning of the period		28		18,534			344,299
Cash and cash equivalents at the end of the period		28	W	44,236		W	11,197

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

6

KB Financial Group Inc.

Notes to the Separate Interim Financial Statements

September 30, 2020 and 2019 (Unaudited), and December 31, 2019

1. The Company

KB Financial Group Inc. (the “Company”), in accordance with Financial Holding Companies Act, was established on September 29, 2008, through stock transfers with the former shareholders of Kookmin Bank, KB Investment & Securities Co., Ltd., KB Asset Management Co., Ltd., KB Real Estate Trust Co., Ltd., KB Investment Co., Ltd., KB Futures Co., Ltd., KB Credit Information Co., Ltd., and KB Data Systems Co., Ltd. in order to provide management services and financing to associated companies. The headquarters are located at 26, Gukjegeumyung-ro-8-gil, Yeongdeungpo-gu, Seoul. The Company’s share capital as of September 30, 2020, is W 2,090,558 million. 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 Company 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 Company acquired Woori Financial Co., Ltd. and changed the name to KB Capital Co., Ltd. Meanwhile, the Company 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 after in May 2017. Also, the Company 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. And, Prudential Life Insurance Company of Korea Ltd. was classified as a subsidiary in August 2020.

The 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 on its Articles of Incorporation is 1,000 million.

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KB Financial Group Inc.

Notes to the Separate Interim Financial Statements

September 30, 2020 and 2019 (Unaudited), and December 31, 2019

2. Basis of Preparation

2.1 Application of Korean IFRS

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

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

The preparation of separate financial statements requires the use of certain critical accounting estimates. Management also needs to exercise judgment in applying the Company’s accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the separate financial statements are disclosed in Note 2.4.

The separate financial statements were prepared in accordance with Korean IFRS 1027, Separate Financial Statements.

The Company’s separate interim financial statements for the nine-month period ended September 30, 2020, have been prepared in accordance with Korean IFRS 1034 Interim Financial Reporting and contain less information than is required in annual separate 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 Company since the end of the previous annual reporting period. These separate interim financial statements have been prepared in accordance with Korean IFRS which is effective or early adopted as of September 30, 2020.

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KB Financial Group Inc.

Notes to the Separate Interim Financial Statements

September 30, 2020 and 2019 (Unaudited), and December 31, 2019

2.1.1 New and amended standards and interpretations adopted by the Company

The Company has applied the following standards and amendments for the first time for their annual reporting period commencing January 1, 2020.

• Amendments to Korean IFRS 1103 Business Combination – Definition of a Business

To assess whether an acquired set of activities and assets is a business, the amendments requires an entity to consider an input that have the ability to contribute to the creation of outputs significantly and a substantive process and exclude economic benefits from lower costs. An entity can apply a concentration test, an optional test, where substantially all of the fair value of gross assets acquired is concentrated in a single identifiable asset or a group of similar assets, the assets acquired would not represent a business. The amendment does not have a significant impact on the financial statements. However, the amendment may have impact on the financial statements if business combination occurs in the future.

• Amendments to Korean IFRS 1001 Presentation of Financial Statements and Korean IFRS 1008 Accounting policies, changes in accounting estimates and errors – Definition of Material

The amendments clarify the explanation of the definition of materiality. The feature of information users needs to be considered when the Company determines the information to be disclosed and the effects of immaterial information as well as omission or misstatement of material information when determining materiality. The amendment does not have a significant impact on the financial statements.

• The IFRS Interpretations Committee (IFRIC) Agenda Decision – Lease term

On December 16, 2019, the IFRS Interpretations Committee announced an interpretation of the “lease term and useful life of leasehold improvements”. This interpretation deals with how to determine the lease term of a cancellable lease or a renewable lease and whether the useful life of non-removable leasehold improvements is limited by the relevant lease term. According to this interpretation, the Company should identify factors to consider the broader economic penalty, reflect identified factors to accounting policies, and calculate lease term based on accounting policy.

The Company is assessing the impact that the change in accounting policy of enforceable period will have on the Company’s financial statements, and the Company will apply the impact in the financial statements once the assessment is completed.

2.1.2 New standards and interpretations not yet adopted by the Company

The Company has not applied the following standards and amendments for the first time for their annual reporting period commencing January 1, 2020.

• Amendments to Korean IFRS 1116 Lease – Practical expedient for COVID-19-Related Rent Exemption, Concessions, Suspension

As a practical expedient, a lessee may elect not to assess whether a rent concession occurring as a direct consequence of the COVID-19 pandemic is a lease modification. A lessee that makes this election shall account for any change in lease payments resulting from the rent concession the same way it would account for the change applying this Standard if the change were not a lease modification. These amendments should be applied for annual periods beginning on or after June 1, 2020, and earlier application is permitted. The Company does not expect that these amendments have a significant impact on the financial statements.

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KB Financial Group Inc.

Notes to the Separate Interim Financial Statements

September 30, 2020 and 2019 (Unaudited), and December 31, 2019

2.2 Measurement Basis

The separate financial statements have been prepared under the historical cost convention unless otherwise specified.

2.3 Functional and Presentation Currency

Items included in the separate financial statements of the Company are measured using the currency of the primary economic environment in which the Company operates (“the functional currency”). The separate financial statements are presented in Korean won, which is the Company’s functional and presentation currency.

2.4 Critical Accounting Estimates

The preparation of the separate financial statements requires the application of accounting policies, certain critical 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.

Significant accounting estimates and assumptions applied in the preparation of these separate interim financial statements are the same as those applied to the separate financial statements for the year ended December 31, 2019, except for the estimates used to determine income tax expense.

3. Significant Accounting Policies

The significant accounting policies and calculation methods applied in the preparation of these separate financial statements have been consistently applied to all periods presented, except for the impact of changes due to adopting new and amended standards and interpretations.

3.1 Income Tax Expenses for the Interim Period

Income tax expense for the interim period is measured applying the expected average annual income tax rate applicable on expected total annual income.

10

KB Financial Group Inc.

Notes to the Separate Interim Financial Statements

September 30, 2020 and 2019 (Unaudited), and December 31, 2019

4. Financial Risk Management

4.1 Summary

4.1.1 Overview of financial risk management policy

The financial risks that the Company is exposed to are credit risk, market risk, liquidity risk and others.

The note regarding financial risk management provides information about the risks that the Company is exposed to, including the objectives, policies, assessment and management process of risks. Additional quantitative information is disclosed throughout the separate financial statements.

The Company’s risk management system focuses on increasing transparency, developing the risk management environment, and the preemptive response to risk due to rapid changes in the financial environment to support the Company’s long-term strategy and business decisions efficiently. Credit risk, market risk and liquidity risk have been recognized as the Company’s key risks. These risks are measured and managed in Internal Capital or VaR (Value at Risk) using a statistical method.

4.1.2 Risk management organization

Risk Management Committee

The Risk Management Committee establishes risk management strategies in accordance with the directives of the Board of Directors and determines the Company’s target risk appetite. The committee approves significant risk matters and reviews the level of risks that the Company is exposed to and the appropriateness of the Company’s risk management operations as an ultimate decision-making authority.

Risk Management Council

The Risk Management Council is a consultative group which reviews and makes decisions on matters delegated by the Risk Management Committee, and discusses the detailed issues relating to the Company’s risk management.

Risk Management Division

The Risk Management Division is responsible for conducting detailed policies, procedures and working processes relating to the Company’s risk management.

4.2 Credit Risk

4.2.1 Overview of credit risk

Credit risk is the risk of possible losses in an asset portfolio in the event of counterparty’s default, breach of contract and deterioration in the credit quality of the counterparty. For risk management reporting purposes, the individual borrower’s default risk is considered.

4.2.2 Credit risk management

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

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KB Financial Group Inc.

Notes to the Separate Interim Financial Statements

September 30, 2020 and 2019 (Unaudited), and December 31, 2019

4.2.3 Maximum exposure to credit risk

The Company’s maximum exposures of financial instruments, excluding equity securities, to credit risk without consideration of collateral values as of September 30, 2020 and December 31, 2019, are as follows:

(In millions of Korean won)	September 30, 2020		December 31, 2019
Due from financial institutions	W	44,239	W	18,537
Loans at amortized cost		180,000		120,000
Loans at fair value through profit or loss		75,316		122,408
Other financial assets		36,621		19,814
	W	336,176	W	280,759

4.2.4 Credit risk of loans

The Company maintains an allowance for loan losses associated with credit risk on loans to manage its credit risk.

The Company assesses expected credit losses and recognizes loss allowances of financial assets at amortized cost and financial asset at fair value through other comprehensive income. Financial assets at fair value through profit or loss are excluded. Expected credit losses are a probability-weighted estimate of possible credit losses occurred in a certain range by reflecting reasonable and supportable information that is reasonably available at the reporting date without undue cost or effort, including information about past events, current conditions and forecasts of future economic conditions. The Company measures the expected credit losses on loans classified as financial assets measured at amortized cost, by deducting allowances for credit losses. The expected credit losses of loans classified as financial assets at fair value through other comprehensive income are presented in other comprehensive income on the financial statements.

4.2.4.1 Credit risk exposure

Loans as of September 30, 2020 and December 31, 2019, are classified as follows:

(In millions of Korean won)	September 30, 2020
	The financial instruments applying 12-month expected credit  losses		The financial instruments applying lifetime expected credit losses				Financial instruments not applying expected credit losses		Total
			Non-impaired		Impaired
Financial assets at amortized cost
Corporate
Grade 1	W	180,000	W	—	W	—	W	—	W	180,000
Grade 2		—		—		—		—		—
Grade 3		—		—		—		—		—
Grade 4		—		—		—		—		—
Grade 5		—		—		—		—		—
	W	180,000	W	—	W	—	W	—	W	180,000

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KB Financial Group Inc.

Notes to the Separate Interim Financial Statements

September 30, 2020 and 2019 (Unaudited), and December 31, 2019

4.2.4.1 Credit risk exposure (cont’d)

(In millions of Korean won)

	December 31, 2019
	The financial instruments applying 12-month expected credit losses		The financial instruments applying lifetime expected credit losses				Financial instruments not applying expected credit losses		Total
			Non- impaired		Impaired
Financial assets at amortized cost
Corporate
Grade 1	W	120,000	W	—	W	—	W	—	W	120,000
Grade 2		—		—		—		—		—
Grade 3		—		—		—		—		—
Grade 4		—		—		—		—		—
Grade 5		—		—		—		—		—
	W	120,000	W	—	W	—	W	—	W	120,000

Credit quality of loans graded according to the probability of default as of September 30, 2020 and December 31, 2019, are as follows:

	Range of PD (%) (Probability of Default)
Grade 1	0.0 ~ 1.0
Grade 2	1.0 ~ 5.0
Grade 3	5.0 ~ 15.0
Grade 4	15.0 ~ 30.0
Grade 5	30.0 ~

4.2.5 Credit risk of due from financial institutions

The credit quality of due from financial institutions as of September 30, 2020 and December 31, 2019, are classified as follows:

(In millions of Korean won)

	September 30, 2020
	The financial instruments applying 12-month expected  credit losses		The financial instruments applying lifetime expected credit losses				Financial instruments not applying expected credit losses		Total
			Non-impaired		Impaired
Due from financial institutions at amortized cost
Grade 1	W	44,239	W	—	W	—	W	—	W	44,239
Grade 2		—		—		—		—		—
Grade 3		—		—		—		—		—
Grade 4		—		—		—		—		—
Grade 5		—		—		—		—		—
	W	44,239	W	—	W	—	W	—	W	44,239

13

KB Financial Group Inc.

Notes to the Separate Interim Financial Statements

September 30, 2020 and 2019 (Unaudited), and December 31, 2019

4.2.5 Credit risk of due from financial institutions (cont’d)

(In millions of Korean won)	December 31, 2019
	The financial instruments applying 12-month expected credit losses		The financial instruments applying lifetime expected credit losses				Financial instruments not applying expected credit losses		Total
			Non-impaired		Impaired
Due from financial institutions at amortized cost
Grade 1	W	18,537	W	—	W	—	W	—	W	18,537
Grade 2		—		—		—		—		—
Grade 3		—		—		—		—		—
Grade 4		—		—		—		—		—
Grade 5		—		—		—		—		—
	W	18,537	W	—	W	—	W	—	W	18,537

4.2.6 Credit risk concentration analysis

Details of the Company’s loans by country as of September 30, 2020 and December 31, 2019, are as follows:

(In millions of Korean won)	September 30, 2020
	Corporate loans1		%		Allowances		Carrying amount
Korea	W	255,316		100.00	W	—	W	255,316

(In millions of Korean won)	December 31, 2019
	Corporate loans1		%		Allowances		Carrying amount
Korea	W	242,408		100.00	W	—	W	242,408

¹  The amounts include Loans at fair value through profit and loss and Loans at amortized cost.

Details of the Company’s corporate loans by industry as of September 30, 2020 and December 31, 2019, are as follows:

(In millions of Korean won)	September 30, 2020
	Corporate loans1		%		Allowances		Carrying amount
Financial institutions	W	255,316		100.00	W	—	W	255,316

(In millions of Korean won)	December 31, 2019
	Corporate loans1		%		Allowances		Carrying amount
Financial institutions	W	242,408		100.00	W	—	W	242,408

¹  The amounts include Loans at fair value through profit and loss and Loans at amortized cost.

14

KB Financial Group Inc.

Notes to the Separate Interim Financial Statements

September 30, 2020 and 2019 (Unaudited), and December 31, 2019

4.2.6 Credit risk concentration analysis (cont’d)

Details of the Company’s due from financial institutions by industry as of September 30, 2020 and December 31, 2019, are as follows:

(In millions of Korean won)	September 30, 2020
	Corporate loans		%		Allowances		Carrying amount
Due from financial institutions at amortized cost
Financial institutions	W	44,239		100.00	W	—	W	44,239

(In millions of Korean won)	December 31, 2019
	Corporate loans		%		Allowances		Carrying amount
Due from financial institutions at amortized cost
Financial institutions	W	18,537		100.00	W	—	W	18,537

Details of the Company’s due from financial institutions by country as of September 30, 2020 and December 31, 2019, are as follows:

(In millions of Korean won)	September 30, 2020
	Corporate loans		%		Allowances		Carrying amount
Due from financial institutions at amortized cost
Korea	W	44,239		100.00	W	—	W	44,239

(In millions of Korean won)	December 31, 2019
	Corporate loans		%		Allowances		Carrying amount
Due from financial institutions at amortized cost
Korea	W	18,537		100.00	W	—	W	18,537

4.3 Liquidity Risk

4.3.1 Overview of liquidity risk

Liquidity risk is a risk that the Company becomes insolvent due to uncertain liquidity caused by unexpected cash outflows, or a risk of borrowing high interest debts or disposal of liquid and other assets at a substantial discount. The Company manages its liquidity risk through analysis of the contractual maturity of all financial assets, liabilities and off-balance items by maturity groups: on demand, less than one month, between one month to three months, between three months to one year, between one year to five years and over five years.

Cash flows disclosed for the maturity analysis are undiscounted contractual principal and interest to be received (paid) and; thus, are not identical to the amount in the financial statements that are based on the present value of expected cash flows in some cases. The amount of interest to be received or paid on floating rate assets and liabilities is measured on the assumption that the current interest rate would be the same through the maturity.

15

KB Financial Group Inc.

Notes to the Separate Interim Financial Statements

September 30, 2020 and 2019 (Unaudited), and December 31, 2019

4.3.2. Liquidity risk management

The liquidity risk is managed by liquidity management principles and related guidelines which are applied to the risk management policies and procedures that address all the possible risks that arise from the overall business of the Company.

4.3.3. Analysis of remaining contractual maturity of financial assets and liabilities

The remaining contractual maturity of financial assets and liabilities as of September 30, 2020 and December 31, 2019, are as follows:

(In millions of Korean won)	September 30, 2020
	On demand		Up to 1 month		1-3 months		3-12 months		1-5 years		Over 5 years		Total
Financial assets
Cash and due from financial institutions1	W	44,238	W	—	W	—	W	—	W	—	W	—	W	44,238
Financial assets at fair value through profit or loss2		75,316		—		—		—		—		391,259		466,575
Loans at amortized cost		—		—		—		183,902		—		—		183,902
Other financial assets		470		5,388		1,034		5,526		23,430		—		35,848
	W	120,024	W	5,388	W	1,034	W	189,428	W	23,430	W	391,259	W	730,563
Financial liabilities
Debts	W	—	W	—	W	340,000	W	—	W	—	W	—	W	340,000
Debentures		—		6,182		275,913		1,006,464		3,795,294		1,804,474		6,888,327
Lease liabilities		—		49		88		221		202		—		560
Other financial liabilities		—		5,629		12,555		—		—		—		18,184
	W	—	W	11,860	W	628,556	W	1,006,685	W	3,795,496	W	1,804,474	W	7,247,071

16

KB Financial Group Inc.

Notes to the Separate Interim Financial Statements

September 30, 2020 and 2019 (Unaudited), and December 31, 2019

4.3.3. Analysis of remaining contractual maturity of financial assets and liabilities (cont’d)

(In millions of Korean won)	December 31, 2019
	On demand		Up to 1 month		1-3 months		3-12 months		1-5 years		Over 5 years		Total
Financial assets
Cash and due from financial institutions1	W	18,619	W	—	W	—	W	—	W	—	W	—	W	18,619
Financial assets at fair value through profit or loss2		122,408		—		—		—		—		291,501		413,909
Loans at amortized cost		—		—		71,523		51,098		—		—		122,621
Other financial assets		—		925		—		15,660		—		—		16,585
	W	141,027	W	925	W	71,523	W	66,758	W	—	W	291,501	W	571,734
Financial liabilities
Debentures	W	—	W	105,903	W	224,578	W	723,474	W	3,624,305	W	1,134,756	W	5,813,016
Lease liabilities		—		44		85		249		215		—		593
Other financial liabilities		—		1,819		—		—		—		—		1,819
	W	—	W	107,766	W	224,663	W	723,723	W	3,624,520	W	1,134,756	W	5,815,428

¹ The amount of W 3 million and W 3 million, respectively, which is restricted due from the financial institutions as of September 30, 2020 and December 31, 2019, is excluded.

² Hybrid securities included in financial assets at fair value through profit or loss are included in the ‘Over 5 years’ category since the point of disposal is uncertain.

17

KB Financial Group Inc.

Notes to the Separate Interim Financial Statements

September 30, 2020 and 2019 (Unaudited), and December 31, 2019

4.4 Market Risk

4.4.1 Concept

Market risk is the risk of possible losses which arise from changes in market factors; such as, interest rate, stock price, foreign exchange rate and other market factors that affect the fair value of future cash flows of financial instruments. The most significant risk of the Company is interest rate risk.

4.4.2 Interest rate risk

Definition of interest rate risk

Interest rate risk is the risk that may occur due to changes in interest rates; such as, the value (fair value) change risk in statement of financial position line items and cash flow change risk in interest income and expense arising from investing and financing activities.

Observation method and management indicator on interest rate risk

The main objective of interest rate risk management is to protect asset values against interest rate fluctuations. The Company manages the risk through measurement and management of Value at Risk for the interest rate.

5. Financial Assets and Financial Liabilities

5.1 Classification and Fair value of Financial Instruments

5.1.1 The carrying amounts and fair value of financial assets and liabilities by category as of September 30, 2020 and December 31, 2019, are as follows:

(In millions of Korean won)	September 30, 2020
	Carrying amount		Fair value
Financial assets
Financial assets at fair value through profit or loss
Hybrid securities	W	391,259	W	391,259
Loans		75,316		75,316
Financial assets at amortized cost
Due from financial institutions		44,239		44,239
Loans		180,000		180,000
Other financial assets		36,621		36,621
	W	727,435	W	727,435
Financial liabilities
Financial liabilities at amortized cost
Debts	W	340,000	W	340,000
Debentures		6,316,734		6,496,264
Other financial liabilities		31,942		31,942
	W	6,688,676	W	6,868,206

18

KB Financial Group Inc.

Notes to the Separate Interim Financial Statements

September 30, 2020 and 2019 (Unaudited), and December 31, 2019

5.1.1 The carrying amounts and fair value of financial assets and liabilities by category as of September 30, 2020 and December 31, 2019, are as follows: (cont’d)

(In millions of Korean won)	December 31, 2019
	Carrying amount		Fair value
Financial assets
Financial assets at fair value through profit or loss
Hybrid securities	W	291,501	W	291,501
Loans		122,408		122,408
Financial assets at amortized cost
Due from financial institutions		18,537		18,537
Loans		120,000		120,000
Other financial assets		19,814		19,814
	W	572,260	W	572,260
Financial liabilities
Financial liabilities at amortized cost
Debentures	W	5,543,446	W	5,631,217
Other financial liabilities		14,940		14,940
	W	5,558,386	W	5,646,157

Fair value is the amount for which an asset could be exchanged, or a liability could be settled, between knowledgeable, willing parties in an arm’s length transaction. For each class of financial assets and financial liabilities, the Company discloses the fair value of that class of assets and liabilities in a way that permits it to be compared with its carrying amount at the end of each reporting period. The best evidence of fair value of financial instruments is quoted price in an active market.

19

KB Financial Group Inc.

Notes to the Separate Interim Financial Statements

September 30, 2020 and 2019 (Unaudited), and December 31, 2019

5.1.1 The carrying amounts and fair value of financial assets and liabilities by category as of September 30, 2020 and December 31, 2019, are as follows: (cont’d)

Methods of determining fair value of financial instruments are as follows:

Cash and due from financial institutions	The carrying amounts of cash and demand due from financial institutions and payment due from financial institutions are a reasonable approximation of fair values. These financial instruments do not have a fixed maturity and are receivable on demand. Fair value of ordinary due from financial institutions is measured using DCF model (Discounted Cash Flow Model).
Investment securities	The fair value of financial instruments that are quoted in active markets is determined using the quoted prices. Fair value is determined through the use of external professional valuation institution where quoted prices are not available. The institutions use one or more of the following valuation techniques including DCF Model, Imputed Market Value Model, Free Cash Flow to Equity Model, Dividend Discount Model, Risk Adjusted Discount Rate Method, and Net Asset Value Method.
Derivatives	For exchange traded derivatives, quoted price in an active market is used to determine fair value and for OTC derivatives, fair value is determined using valuation techniques. The Company uses internally developed valuation models that are widely used by market participants to determine fair values of plain vanilla OTC derivatives including options, interest rate swaps, and currency swaps, based on observable market parameters. However, some complex financial instruments are valued using appropriate models developed from generally accepted market valuation models including the Finite Difference Method and the Monte Carlo Simulation or valuation results from independent external professional valuation institution.
Loans at amortized cost	DCF model is used to determine the fair value of loans. Fair value is determined by discounting the expected cash flows, which are contractual cash flows adjusted by the expected prepayment rate, at appropriate discount rate.
Debts	DCF model is used to determine the fair value of debts, but in the case of short-term maturity, the carrying amount is used as the fair value.
Debentures	Fair value is determined by using the valuations of external professional valuation institution, which are calculated using market inputs.
Other financial assets and liabilities	The carrying amounts are reasonable approximation of fair values. These financial instruments are temporary accounts used for other various transactions and their maturities are relatively short or not defined.

5.1.2 Fair value hierarchy

The Company believes that valuation methods used for measuring the fair values of financial instruments are reasonable and that the fair values recognized in the statements of financial position are appropriate. However, the fair values of the financial instruments recognized in the statements of financial position may be different if other valuation methods or assumptions are used. Additionally, as there is a variety of valuation techniques and assumptions used in measuring fair value, it may be difficult to reasonably compare the fair value with that of other financial institutions.

20

KB Financial Group Inc.

Notes to the Separate Interim Financial Statements

September 30, 2020 and 2019 (Unaudited), and December 31, 2019

5.1.2 Fair value hierarchy (cont’d)

The Company classifies and discloses fair value of the financial instruments into the three-level hierarchy as follows:

Level 1	The fair values are based on quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date.
Level 2	The fair values are based on inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.
Level 3	The fair values are based on unobservable inputs for the asset or liability.

When the inputs used to measure the fair value of an asset or a liability might be categorized within different levels of the fair value hierarchy, the fair value measurement is categorized in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement. Assessing the significance of a particular input to the entire measurement requires judgment, taking into account factors specific to the asset or liability. If a fair value measurement uses observable inputs that require significant adjustment based on unobservable inputs, that measurement is a Level 3 measurement.

5.1.2.1 Fair value hierarchy of financial assets and liabilities measured at fair value in the statements of financial position

The fair value hierarchy of financial assets measured at fair value in the statement of financial position as of September 30, 2020 and December 31, 2019, are as follows:

(In millions of Korean won)	September 30, 2020
	Fair value hierarchy						Total
	Level 1		Level 2		Level 3
Financial assets
Financial assets at fair value through profit or loss
Hybrid securities	W	—	W	—	W	391,259	W	391,259
Loans		—		75,316		—		75,316
	W	—	W	75,316	W	391,259	W	466,575

(In millions of Korean won)	December 31, 2019
	Fair value hierarchy						Total
	Level 1		Level 2		Level 3
Financial assets
Financial assets at fair value through profit or loss
Hybrid securities	W	—	W	—	W	291,501	W	291,501
Loans		—		122,408		—		122,408
	W	—	W	122,408	W	291,501	W	413,909

21

KB Financial Group Inc.

Notes to the Separate Interim Financial Statements

September 30, 2020 and 2019 (Unaudited), and December 31, 2019

5.1.2.1 Fair value hierarchy of financial assets and liabilities measured at fair value in the statements of financial position (cont’d)

Valuation techniques and inputs of financial assets and liabilities at fair value in the statements of financial position and classified as Level 2 as of September 30, 2020 and December 31, 2019, are as follows:

(In millions of Korean won)	September 30, 2020
	Fair value		Valuation techniques		Inputs
Financial assets
Financial assets at fair value through profit or loss Loans	W	75,316		DCF model		Interest, Discount rate, etc.

(In millions of Korean won)	December 31, 2019
	Fair value		Valuation techniques		Inputs
Financial assets
Financial assets at fair value through profit or loss Loans	W	122,408		DCF model		Interest, Discount rate, etc.

5.1.2.2 Fair value hierarchy of financial assets and liabilities whose fair values are disclosed

The fair value hierarchy of financial assets and liabilities whose fair values are disclosed as of September 30, 2020 and December 31, 2019, are as follows:

(In millions of Korean won)	September 30, 2020
	Fair value hierarchy
	Level 1		Level 2		Level 3		Total
Financial assets
Cash and due from financial institutions1	W	—	W	44,239	W	—	W	44,239
Loans at amortized cost2		—		—		180,000		180,000
Other financial assets3		—		—		36,621		36,621
	W	—	W	44,239	W	216,621	W	260,860
Financial liabilities
Debts4	W	—	W	340,000	W	—	W	340,000
Debentures		—		6,496,264		—		6,496,264
Other financial liabilities3		—		—		31,942		31,942
	W	—	W	6,836,264	W	31,942	W	6,868,206

22

KB Financial Group Inc.

Notes to the Separate Interim Financial Statements

September 30, 2020 and 2019 (Unaudited), and December 31, 2019

5.1.2.2 Fair value hierarchy of financial assets and liabilities whose fair values are disclosed (cont’d)

(In millions of Korean won)	December 31, 2019
	Fair value hierarchy
	Level 1		Level 2		Level 3		Total
Financial assets
Cash and due from financial institutions1	W	—	W	18,537	W	—	W	18,537
Loans at amortized cost2		—		—		120,000		120,000
Other financial assets3		—		—		19,814		19,814
	W	—	W	18,537	W	139,814	W	158,351
Financial liabilities
Debentures	W	—	W	5,631,217	W	—	W	5,631,217
Other financial liabilities3		—		—		14,940		14,940
	W	—	W	5,631,217	W	14,940	W	5,646,157

¹  Because due from financial institutions classified as level 2 are deposits on demand, carrying amounts are reasonable approximations of fair values.

²  Because loans at amortized cost classified as level 3 are loans with residual maturity of less than one year, carrying amounts are reasonable approximations of fair values.

³  For other financial assets and other financial liabilities classified as level 3, carrying amounts are reasonable approximations of fair values.

⁴  For borrowings classified as Level 2, the carrying amount was considered an approximation of fair value and the carrying amount was disclosed at fair value.

Valuation techniques and inputs used in the fair value measurement

For financial assets and liabilities whose carrying amount is a reasonable approximation of fair value, we do not disclose valuation techniques and inputs.

Valuation techniques and inputs of financial assets and liabilities whose fair values are disclosed and classified as Level 2 as of September 30, 2020 and December 31, 2019, are as follows:

(In millions of Korean won)	Fair value				Valuation Techniques		Inputs
	September 30, 2020		December 31, 2019
Financial liabilities
Debentures	W	6,496,264	W	5,631,217		DCF model		Discount rate

5.2 Level 3 of the Fair Value Hierarchy Disclosure

5.2.1 Valuation policy and process for fair value measurement categorized as Level 3

The Company uses external, independent and qualified professional valuer’s valuation to determine the fair value of the Company’s assets at the end of every reporting period.

23

KB Financial Group Inc.

Notes to the Separate Interim Financial Statements

September 30, 2020 and 2019 (Unaudited), and December 31, 2019

5.2.2 Changes in fair value (Level 3) measured using valuation technique based on assumption that is unobservable in the market

Details of changes in Level 3 of the fair value hierarchy for the nine-month periods ended September 30, 2020 and 2019, are as follows:

(In millions of Korean won)	Financial assets at fair value through profit or loss			Financial assets at fair value through profit or loss
	2020			2019
Beginning balance	W	291,501		W	289,179
Total gains or losses
- Profit or loss for the period		(242	)		3,099
- Other comprehensive income		—			—
Purchases		100,000			—
Sales		—			—
Issues		—			—
Settlements		—			—
Transfers into Level 3		—			—
Transfers out of Level 3		—			—
Ending balance	W	391,259		W	292,278

In relation to changes in Level 3 of the fair value hierarchy, total gains or losses recognized in profit or loss for the period, and profit or loss from financial instruments held at the end of the reporting period in the statement of comprehensive income for the nine-month periods ended September 30, 2020 and 2019, are as follows:

(In millions of Korean won)	2020						2019
	Losses from financial investments at fair value through profit or loss		Other operating income		Net interest income		Gains from financial investments at fair value through profit or loss		Other operating income		Net interest income
Total gains or losses included in profit or loss for the period	W	(242)	W	—	W	—	W	3,099	W	—	W	—
Total gains or losses for the period included in profit or loss for financial instruments held at the end of the reporting period	W	(242)	W	—	W	—	W	3,099	W	—	W	—

24

KB Financial Group Inc.

Notes to the Separate Interim Financial Statements

September 30, 2020 and 2019 (Unaudited), and December 31, 2019

5.2.3 Sensitivity analysis of changes in unobservable inputs

5.2.3.1 Information about fair value measurements using unobservable inputs as of September 30, 2020 and December 31, 2019, are as follows:

(In millions of Korean won)	September 30, 2020
	Fair value	Valuation technique	Inputs	Unobservable inputs	Range of unobservable inputs (%)		Relationship of unobservable inputs to fair value
Financial assets
Financial assets at fair value through profit or loss
Hybrid securities	W391,259	Hull and White Model, Monte Carlo Simulation	Matrix YTM, Additional spread by grade, Risk spread of company, Valid credit rating, Disclosed information of securities, Interest rate estimation variability	Discount rate		1.95 ~ 4.50	The lower the discount rate, the higher the fair value
				Volatility of interest rate		0.48	The higher the volatility, the higher the fair value fluctuation

(In millions of Korean won)	December 31, 2019
	Fair value	Valuation technique	Inputs	Unobservable inputs	Range of unobservable inputs (%)		Relationship of unobservable inputs to fair value
Financial assets
Financial assets at fair value through profit or loss
Hybrid securities	W291,501	Hull and White Model, Monte Carlo Simulation	Matrix YTM, Additional spread by grade, Risk spread of company, Valid credit rating, Disclosed information of securities, Interest rate estimation variability	Discount rate		2.05 ~ 4.45	The lower the discount rate, the higher the fair value
				Volatility of interest rate		0.50	The higher the volatility, the higher the fair value fluctuation

25

KB Financial Group Inc.

Notes to the Separate Interim Financial Statements

September 30, 2020 and 2019 (Unaudited), and December 31, 2019

5.2.3.2 Sensitivity analysis of changes in unobservable inputs

Sensitivity analysis of financial instruments is performed to measure favorable and unfavorable changes in the fair value of financial instruments which are affected by the unobservable parameters, using a statistical technique. When the fair value is affected by more than two input parameters, the amounts represent the most favorable or most unfavorable outcome. There are hybrid securities whose fair value changes are recognized in profit or loss.

The results of the sensitivity analysis from changes in inputs as of September 30, 2020 and December 31, 2019, are as follows:

(In millions of Korean won)	September 30, 2020
	Recognition in profit or loss					Other comprehensive income
	Favorable changes		Unfavorable changes			Favorable changes		Unfavorable changes
Financial assets
Financial assets at fair value through profit or loss Hybrid securities1	W	3,618	W	(3,499	)	W	—	W	—

¹  For equity securities, the changes in fair value are calculated by increasing or decreasing correlations between discount rate (1.95 ~ 4.50%) which are principal unobservable input parameters. And, the changes in fair value are calculated by increasing or decreasing the correlation coefficient between short-term and long-term interests or volatility of the interest rates, which are unobservable inputs, by 1%.

(In millions of Korean won)	December 31, 2019
	Recognition in profit or loss					Other comprehensive income
	Favorable changes		Unfavorable changes			Favorable changes		Unfavorable changes
Financial assets
Financial assets at fair value through profit or loss Hybrid securities1	W	3,215	W	(3,195	)	W	—	W	—

¹  For equity securities, the changes in fair value are calculated by increasing or decreasing correlations between discount rate (2.05 ~ 4.45%) which are principal unobservable input parameters. And, the changes in fair value are calculated by increasing or decreasing the correlation coefficient between short-term and long-term interests or volatility of the interest rates, which are unobservable inputs, by 1%.

26

KB Financial Group Inc.

Notes to the Separate Interim Financial Statements

September 30, 2020 and 2019 (Unaudited), and December 31, 2019

6. Due from Financial Institution

Details of due from financial institution as of September 30, 2020 and December 31, 2019, are as follows:

(In millions of Korean won)		Financial Institution	Interest rate (%) (As of September 30, 2020)		September 30, 2020		December 31, 2019
Due from financial institution in Korean won	Due from banks	Kookmin Bank		0.00 ~ 0.25	W	44,239	W	18,537

Details of a maturity analysis of due from financial institution, excluding restricted cash, as of September 30, 2020 and December 31, 2019, are as follows:

(In millions of Korean won)

September 30, 2020

Up to   3 months

3~6   months

6~12   months

1~3 years

Over   3 years

Total

Due from financial institution in Korean won

W

44,236

W

—

W

—

W

—

W

—

W

44,236

(In millions of Korean won)

December 31, 2019

Up to  3 months

3~6   months

6~12   months

1~3 years

Over   3 years

Total

Due from financial institution in Korean won

W

18,534

W

—

W

—

W

—

W

—

W

18,534

Restricted cash from financial institution as of September 30, 2020 and December 31, 2019, are as follows:

(In millions of Korean won)	Financial Institution	September 30, 2020		December 31, 2019		Reason for restriction
Due from financial institution in Korean won	Kookmin Bank	W	3	W	3	Pledged as collateral for the overdraft establishment

27

KB Financial Group Inc.

Notes to the Separate Interim Financial Statements

September 30, 2020 and 2019 (Unaudited), and December 31, 2019

7. Financial Assets at Fair Value through Profit or Loss

Details of financial assets at fair value through profit or loss as of September 30, 2020 and December 31, 2019, are as follows:

(In millions of Korean won)	September 30, 2020		December 31, 2019
Financial assets at fair value through profit or loss
Hybrid securities	W	391,259	W	291,501
Loans		75,316		122,408
	W	466,575	W	413,909

8. Loans at amortized cost

Details of loans at amortized cost as of September 30, 2020 and December 31, 2019, are as follows:

(In millions of Korean won)	September 30, 2020		December 31, 2019
Financial assets at fair value through profit or loss
Loans at amortized cost	W	180,000	W	120,000
Less: Allowances for loan losses		—		—
Carrying amount	W	180,000	W	120,000

9. Investments in Subsidiaries

Details of subsidiaries as of September 30, 2020, are as follows:

Name of subsidiary	Industry	Location
Kookmin Bank	Banking and domestic, foreign exchange transaction	Korea
KB Securities Co., Ltd.	Financial investment	Korea
KB Insurance Co., Ltd.	Insurance	Korea
KB Kookmin Card Co., Ltd.	Credit card	Korea
Prudential Life Insurance Company of Korea Ltd.	Life insurance	Korea
KB Asset Management Co., Ltd.	Investment advisory and collective investment	Korea
KB Capital Co., Ltd.	Financial leasing	Korea
KB Life Insurance Co., Ltd.	Life insurance	Korea
KB Real Estate Trust Co., Ltd.	Real estate trust management	Korea
KB Savings Bank Co., Ltd.	Savings banking	Korea
KB Investment Co., Ltd.	Capital investment	Korea
KB Data System Co., Ltd.	System software, development and supply	Korea
KB Credit Information Co., Ltd.	Collection of receivables and credit investigation	Korea

28

KB Financial Group Inc.

Notes to the Separate Interim Financial Statements

September 30, 2020 and 2019 (Unaudited), and December 31, 2019

9. Investments in Subsidiaries (cont’d)

Investments in subsidiaries as of September 30, 2020 and December 31, 2019, are as follows:

(In millions of Korean won, except for shares and ownership %)	Number of Issued Shares		Ownership (%)		Carrying amount
Name of subsidiary	As of September 30, 2020				September 30, 2020		December 31, 2019
Kookmin Bank		404,379,116		100.00	W	14,821,721	W	14,821,721
KB Securities Co., Ltd.		298,620,424		100.00		3,342,391		3,342,391
KB Insurance Co., Ltd.		66,500,000		100.00		2,375,430		2,375,430
KB Kookmin Card Co., Ltd.		92,000,000		100.00		1,953,175		1,953,175
Prudential Life Insurance Company of Korea Ltd.1		15,000,000		100.00		2,310,054		—
KB Asset Management Co., Ltd.		7,667,550		100.00		96,312		96,312
KB Capital Co., Ltd.1		25,227,566		100.00		673,811		623,811
KB Life Insurance Co., Ltd.		91,200,000		100.00		485,314		485,314
KB Real Estate Trust Co., Ltd.		16,000,000		100.00		121,553		121,553
KB Savings Bank Co., Ltd.		8,001,912		100.00		157,544		157,544
KB Investment Co., Ltd.		22,525,328		100.00		154,910		154,910
KB Data System Co., Ltd.		800,000		100.00		6,334		6,334
KB Credit Information Co., Ltd.		1,252,400		100.00		23,621		23,621
					W	26,522,170	W	24,162,116

¹  Carrying amount of investments in subsidiaries increased by W 50 billion and W 2.310 trillion due to the capital increase of KB Capital Co,. Ltd. and acquisition of Prudential Life Insurance Company of Korea Ltd., respectively for the nine-month period ended September 30, 2020.

Changes in accumulated impairment losses on investments in subsidiaries for the nine-month periods ended September 30, 2020 and 2019, are as follows:

(In millions of Korean won)	2020
	Beginning			Impairment		Others		Ending
Accumulated impairment losses on investments in subsidiaries	W	(51,742	)	W	—	W	—	W(51,742)

(In millions of Korean won)	2019
	Beginning			Impairment		Others		Ending
Accumulated impairment losses on investments in subsidiaries	W	(51,742	)	W	—	W	—	W(51,742)

29

KB Financial Group Inc.

Notes to the Separate Interim Financial Statements

September 30, 2020 and 2019 (Unaudited), and December 31, 2019

10. Property and Equipment

Details of property and equipment as of September 30, 2020 and December 31, 2019, are as follows:

(In millions of Korean won)	September 30, 2020
	Acquisition cost		Accumulated depreciation			Accumulated impairment losses		Carrying amount
Leasehold improvements	W	4,119	W	(3,026	)	W	—	W	1,093
Equipment and others		5,527		(3,820	)		—		1,707
Right-of-use property and equipment—Buildings		1,656		(777	)		—		879
Right-of-use property and equipment -Vehicles		1,084		(762	)		—		322
Right-of-use property and equipment -Others		36		(32	)		—		4
	W	12,422	W	(8,417	)	W	—	W	4,005
(In millions of Korean won)	December 31, 2019
	Acquisition cost		Accumulated depreciation			Accumulated impairment losses		Carrying amount
Leasehold improvements	W	4,119	W	(2,309	)	W	—	W	1,810
Equipment and others		4,818		(2,946	)		—		1,872
Right-of-use property and equipment—Buildings		683		(490	)		—		193
Right-of-use property and equipment -Vehicles		904		(624	)		—		280
Right-of-use property and equipment -Others		36		(21	)		—		15
	W	10,560	W	(6,390	)	W	—	W	4,170

30

KB Financial Group Inc.

Notes to the Separate Interim Financial Statements

September 30, 2020 and 2019 (Unaudited), and December 31, 2019

11. Intangible Assets

Details of intangible assets as of September 30, 2020 and December 31, 2019, are as follows:

(In millions of Korean won)	September 30, 2020
	Acquisition cost		Accumulated amortization			Accumulated impairment losses			Carrying amount
Software	W	5,197	W	(3,547	)	W	—		W	1,650
Membership rights		9,765		—			(963	)		8,802
Other intangible assets		6,005		(4,436	)		—			1,569
	W	20,967	W	(7,983	)	W	(963	)	W	12,021
(In millions of Korean won)	December 31, 2019
	Acquisition cost		Accumulated amortization			Accumulated impairment losses			Carrying amount
Software	W	4,849	W	(3,101	)	W	—		W	1,748
Membership rights		9,765		—			(1,786	)		7,979
Other intangible assets		5,451		(4,086	)		—			1,365
	W	20,065	W	(7,187	)	W	(1,786	)	W	11,092

12. Deferred Income Tax Assets and Liabilities

Details of deferred income tax assets and liabilities as of September 30, 2020 and December 31, 2019, are as follows:

(In millions of Korean won)	September 30, 2020
	Assets			Liabilities			Net amounts
Share-based payments	W	2,800		W	—		W	2,800
Membership rights		265			—			265
Defined benefit obligation		2,960			—			2,960
Plan assets		—			(2,960	)		(2,960	)
Short-term employee benefits		985			—			985
Financial assets at fair value through profit or loss		2,404			—			2,404
Others		695			(4,540	)		(3,845	)
		10,109			(7,500	)		2,609
Offsetting of deferred tax assets and liabilities		(7,500	)		7,500			—
	W	2,609		W	—		W	2,609

31

KB Financial Group Inc.

Notes to the Separate Interim Financial Statements

September 30, 2020 and 2019 (Unaudited), and December 31, 2019

12. Deferred Income Tax Assets and Liabilities (cont’d)

(In millions of Korean won)	December 31, 2019
	Assets			Liabilities			Net amounts
Share-based payments	W	3,260		W	—		W	3,260
Membership rights		491			—			491
Defined benefit obligation		2,888			—			2,888
Plan assets		—			(2,888	)		(2,888	)
Short-term employee benefits		1,193			—			1,193
Financial assets at fair value through profit or loss		2,337			—			2,337
Others		449			(204	)		245
		10,618			(3,092	)		7,526
Offsetting of deferred tax assets and liabilities		(3,092	)		3,092			—
	W	7,526		W	—		W	7,526

13. Other Assets

Details of other assets as of September 30, 2020 and December 31, 2019, are as follows:

(In millions of Korean won)	September 30, 2020		December 31, 2019
Other financial assets
Receivables	W	4,999	W	—
Accrued income		3,450		3,654
Guarantee deposits		28,172		16,160
		36,621		19,814
Other non-financial assets
Receivables		755,651		588,765
Prepaid expenses		1,151		556
Advanced payments		2,327		151
		759,129		589,472
	W	795,750	W	609,286

32

KB Financial Group Inc.

Notes to the Separate Interim Financial Statements

September 30, 2020 and 2019 (Unaudited), and December 31, 2019

14. Debts

Debts as of September 30, 2020 and December 31, 2019, are as follows:

(In millions of Korean won)	September 30, 2020		December 31, 2019
Borrowings	W	340,000	W	—

Details of borrowings as of September 30, 2020 and December 31, 2019, are as follows:

(In millions of Korean won)

Lender

Issued date

Maturity date

Annual interest rates (%) as of September 30, 2020

September 30, 2020

December 31, 2019

Borrowings in Korean won

Other borrowings

MERITZ Securities Co., Ltd.

June 29, 2020

Nov. 03, 2020

1.06

W

100,000

W

—

Borrowings in Korean won

Other borrowings

MERITZ Securities Co., Ltd.

July 29, 2020

Nov. 03, 2020

0.77

240,000

—

W

340,000

W

—

The maturities of debts as of September 30, 2020, are as follows:

September 30, 2020

(In millions of Korean won)

Up to 3 months

3~6 months

6~12 months

1~3 years

Over 3 years

Total

Borrowings in Korean won

W

340,000

W

—

W

—

W

—

W

—

W

340,000

33

KB Financial Group Inc.

Notes to the Separate Interim Financial Statements

September 30, 2020 and 2019 (Unaudited), and December 31, 2019

15. Debentures

Details of debentures as of September 30, 2020 and December 31, 2019, are as follows:

(In millions of Korean won)
	Issued date		Expiration date		Annual interest rates (%) as of September 30, 2020		September 30, 2020		December 31, 2019
Unguaranteed debentures No. 3-3		Aug. 13, 2013		Aug. 13, 2020		3.65	W	—	W	70,000
Unguaranteed debentures No. 5-2		Mar. 19, 2014		Mar. 19, 2021		3.50		50,000		50,000
Unguaranteed debentures No. 6		Feb. 26, 2015		Feb. 26, 2022		2.38		30,000		30,000
Unguaranteed debentures No. 8		June 23, 2015		June 23, 2020		2.34		—		100,000
Unguaranteed debentures No. 9		June 23, 2015		June 23, 2022		2.52		150,000		150,000
Unguaranteed debentures No. 10		Sept. 17, 2015		Sept. 17, 2020		2.16		—		20,000
Unguaranteed debentures No. 11		Sept. 23, 2015		Sept. 23, 2020		2.06		—		30,000
Unguaranteed debentures No. 12-2		Nov. 27, 2015		Nov. 27, 2020		2.26		110,000		110,000
Unguaranteed debentures No. 12-3		Nov. 27, 2015		Nov. 27, 2022		2.38		50,000		50,000
Unguaranteed debentures No. 14-1		Dec. 09, 2015		Dec. 09, 2020		2.27		140,000		140,000
Unguaranteed debentures No. 14-2		Dec. 09, 2015		Dec. 09, 2022		2.38		30,000		30,000
Unguaranteed debentures No. 15-2		May 12, 2016		May 12, 2021		1.72		220,000		220,000
Unguaranteed debentures No. 15-3		May 12, 2016		May 12, 2026		2.01		200,000		200,000
Unguaranteed debentures No. 16-2		May 27, 2016		May 27, 2021		1.78		60,000		60,000
Unguaranteed debentures No. 16-3		May 27, 2016		May 27, 2023		1.91		150,000		150,000
Unguaranteed debentures No. 17		June 27, 2016		June 27, 2021		1.51		50,000		50,000
Unguaranteed debentures No. 18-2		July 25, 2016		July 25, 2021		1.45		110,000		110,000
Unguaranteed debentures No. 18-3		July 25, 2016		July 25, 2026		1.69		80,000		80,000
Unguaranteed debentures No. 19-2		Aug. 25, 2016		Aug. 25, 2021		1.46		100,000		100,000
Unguaranteed debentures No. 19-3		Aug. 25, 2016		Aug. 25, 2026		1.69		120,000		120,000
Unguaranteed debentures No. 20-2		Nov. 28, 2016		Nov. 28, 2021		2.28		50,000		50,000
Unguaranteed debentures No. 21		Jan. 25, 2017		Jan. 23, 2020		1.82		—		100,000
Unguaranteed debentures No. 22-1		Feb. 28, 2017		Feb. 28, 2020		1.89		—		120,000
Unguaranteed debentures No. 22-2		Feb. 28, 2017		Feb. 28, 2022		2.11		110,000		110,000
Unguaranteed debentures No. 23		Mar. 23, 2017		Mar. 23, 2020		1.95		—		80,000
Unguaranteed debentures No. 24		Apr. 06, 2017		Apr. 06, 2020		1.97		—		70,000
Unguaranteed debentures No. 25-2		May 24, 2017		May 24, 2020		1.97		—		100,000
Unguaranteed debentures No. 25-3		May 24, 2017		May 24, 2022		2.23		270,000		270,000
Unguaranteed debentures No. 25-4		May 24, 2017		May 24, 2027		2.62		80,000		80,000
Unguaranteed debentures No. 26-1		June 27, 2017		June 27, 2022		2.18		50,000		50,000
Unguaranteed debentures No. 26-2		June 27, 2017		June 27, 2024		2.34		200,000		200,000
Unguaranteed debentures No. 27		July 19, 2017		July 19, 2024		2.41		100,000		100,000
Unguaranteed debentures No. 28-1		Aug. 30, 2017		Aug. 30, 2022		2.30		60,000		60,000
Unguaranteed debentures No. 28-2		Aug. 30, 2017		Aug. 30, 2024		2.43		30,000		30,000
Unguaranteed debentures No. 28-3		Aug. 30, 2017		Aug. 30, 2027		2.60		60,000		60,000
Unguaranteed debentures No. 29-1		Sept. 19, 2017		Sept. 19, 2022		2.29		150,000		150,000
Unguaranteed debentures No. 29-2		Sept. 19, 2017		Sept. 19, 2024		2.44		110,000		110,000
Unguaranteed debentures No. 30		Jan. 25, 2018		Jan. 25, 2021		2.45		80,000		80,000
Unguaranteed debentures No. 31-1		Feb. 28, 2018		Feb. 26, 2021		2.57		150,000		150,000
Unguaranteed debentures No. 31-2		Feb. 28, 2018		Feb. 28, 2023		2.81		50,000		50,000
Unguaranteed debentures No. 31-3		Feb. 28, 2018		Feb. 28, 2028		3.02		60,000		60,000
Unguaranteed debentures No. 32-1		Apr. 06, 2018		Apr. 06, 2021		2.50		60,000		60,000
Unguaranteed debentures No. 32-2		Apr. 06, 2018		Apr. 06, 2023		2.71		80,000		80,000
Unguaranteed debentures No. 32-3		Apr. 06, 2018		Apr. 06, 2028		2.86		20,000		20,000
Unguaranteed debentures No. 33-1		June 12, 2018		June 12, 2023		2.81		100,000		100,000
Unguaranteed debentures No. 33-2		June 12, 2018		June 12, 2028		2.92		30,000		30,000
Unguaranteed debentures No. 34-1		July 25, 2018		July 23, 2021		2.41		40,000		40,000
Unguaranteed debentures No. 34-2		July 25, 2018		July 25, 2023		2.65		70,000		70,000
Unguaranteed debentures No. 34-3		July 25, 2018		July 25, 2025		2.71		20,000		20,000
Unguaranteed debentures No. 34-4		July 25, 2018		July 25, 2028		2.76		20,000		20,000
Unguaranteed debentures No. 35		Oct. 05, 2018		Oct. 05, 2023		2.52		120,000		120,000
Unguaranteed debentures No. 36-1		Feb. 22, 2019		Feb. 22, 2022		2.03		120,000		120,000
Unguaranteed debentures No. 36-2		Feb. 22, 2019		Feb. 22, 2024		2.11		230,000		230,000
Unguaranteed debentures No. 36-3		Feb. 22, 2019		Feb. 22, 2029		2.22		60,000		60,000
Unguaranteed debentures No. 37-1		Mar. 15, 2019		Mar. 15, 2024		2.06		140,000		140,000
Unguaranteed debentures No. 37-2		Mar. 15, 2019		Mar. 15, 2029		2.16		70,000		70,000
Unguaranteed debentures No. 38-1		June. 19, 2019		June 19, 2026		1.73		80,000		80,000
Unguaranteed debentures No. 38-2		June. 19, 2019		June 19, 2029		1.77		120,000		120,000
Unguaranteed debentures No. 39-1		Oct. 15, 2019		Oct. 15, 2024		1.60		80,000		80,000
Unguaranteed debentures No. 39-2		Oct. 15, 2019		Oct. 15, 2029		1.67		40,000		40,000
Unguaranteed debentures No. 40-1		Dec. 04, 2019		Dec. 04, 2024		1.76		70,000		70,000
Unguaranteed debentures No. 40-2		Dec. 04, 2019		Dec. 04, 2029		1.87		30,000		30,000
Unguaranteed debentures No. 41-1		Jan. 16, 2020		Jan. 16, 2023		1.64		110,000		—
Unguaranteed debentures No. 41-2		Jan. 16, 2020		Jan. 16, 2025		1.74		100,000		—
Unguaranteed debentures No. 41-3		Jan. 16, 2020		Jan. 16, 2030		1.88		40,000		—

34

KB Financial Group Inc.

Notes to the Separate Interim Financial Statements

September 30, 2020 and 2019 (Unaudited), and December 31, 2019

15. Debentures (cont’d)

(In millions of Korean won)
	Issued date		Expiration date		Annual interest rates (%) as of September 30, 2020		September 30, 2020			December 31, 2019
Subordinated debentures No. 1-1		Feb. 18, 2020		Feb. 18, 2030		2.21		370,000			—
Subordinated debentures No. 1-2		Feb. 18, 2020		Feb. 18, 2035		2.26		30,000			—
Unguaranteed debentures No. 42-1		May 13, 2020		May 13, 2025		1.59		130,000			—
Unguaranteed debentures No. 42-2		May 13, 2020		May 13, 2030		1.78		70,000			—
Unguaranteed debentures No. 43-1		June 16, 2020		June 16, 2023		1.18		50,000			—
Unguaranteed debentures No. 43-2		June 16, 2020		June 16, 2025		1.44		110,000			—
Unguaranteed debentures No. 43-3		June 16, 2020		June 16, 2030		1.63		50,000			—
Exchangeable bonds No. 11		June 30, 2020		June 30, 2025		—		240,000			—
Unguaranteed debentures No. 44-1		Aug 11, 2020		Aug 11, 2022		0.96		80,000			—
Unguaranteed debentures No. 44-2		Aug 11, 2020		Aug 11, 2023		1.07		50,000			—
Unguaranteed debentures No. 44-3		Aug 11, 2020		Aug 9, 2024		1.18		30,000			—
Unguaranteed debentures No. 44-4		Aug 11, 2020		Aug 11, 2027		1.39		20,000			—
								6,340,000			5,550,000
				Less: Bond Discounts				(7,499	)		(6,554	)
				Less: adjustment on exchange right				(15,767	)		—
							W	6,316,734		W	5,543,446

¹ Fair value of the liability component of exchangeable bonds is calculated by using market interest rates of bonds under the same conditions without the exchangeable rights. The residual amount, after deducting liability component from the issuance amount, represents the value of exchangeable rights and is recorded in equity. Shares to be exchanged are 5 million treasury shares of KB Financial Group Inc. with the exchange price of W 48,000. Exercise period for exchangeable rights is from the 60th day from the Issued date to 10 days before the Expiration date.

The maturities of debentures as of September 30, 2020 and December 31, 2019, are as follows:

(In millions of Korean won)

September 30, 2020

Up to 3 months

3~6 months

6~12 months

1~3 years

Over 3 years

Total

Debentures in Korean won

W

250,000

W

280,000

W

640,000

W

1,810,000

W

3,360,000

W

6,340,000

(In millions of Korean won)

December 31, 2019

Up to 3 months

3~6 months

6~12 months

1~3 years

Over 3 years

Total

Debentures in Korean won

W

300,000

W

270,000

W

370,000

W

1,990,000

W

2,620,000

W

5,550,000

Changes in debentures based on face value for the nine-month periods ended September 30, 2020 and 2019, are as follows:

(In millions of Korean won)	2020
	Beginning		Issue		Repayment			Ending
Debentures in Korean won	W	5,550,000	W	1,480,000	W	(690,000	)	W	6,340,000

(In millions of Korean won)	2019
	Beginning		Issue		Repayment			Ending
Debentures in Korean won	W	5,380,000	W	820,000	W	(820,000	)	W	5,380,000

35

KB Financial Group Inc.

Notes to the Separate Interim Financial Statements

September 30, 2020 and 2019 (Unaudited), and December 31, 2019

16. Net Defined Benefit Liabilities

Defined benefit plan

The Company operates defined benefit plans which have the following characteristics:

• The Company has the obligation to pay the agreed benefits to all its current and former employees.

• Actuarial risk (that benefits will cost more than expected) and investment risk fall, in substance, on the Company.

The net defined benefit liability recognized in the statements of financial position is calculated in accordance with actuarial valuation methods using market data; such as, interest rates, future salary increase rate and mortality rate based on historical data. Actuarial assumptions may differ from actual results, due to changes in the market, economic trends and mortality trends.

Changes in the defined benefit obligation for the nine-month periods ended September 30, 2020 and 2019, are as follows:

(In millions of Korean won)	2020
	Present value of defined benefit obligation			Fair value of plan assets			Net defined benefit liabilities
Beginning	W	20,312		W	(19,875	)	W	437
Current service cost		1,559			—			1,559
Interest cost (income)		303			(297	)		6
Remeasurements:
Return on plan assets (excluding amounts included in interest income)		—			41			41
Payments from plans (benefit payments)		(1,601	)		1,601			—
Payments from the Company		(3	)		—			(3	)
Transfer in		2,001			(2,001	)		—
Transfer out		(1,706)			1,706			—
Ending	W	20,865		W	(18,825	)	W	2,040
(In millions of Korean won)	2019
	Present value of defined benefit obligation			Fair value of plan assets			Net defined benefit liabilities
Beginning	W	20,363		W	(20,180	)	W	183
Current service cost		1,666			—			1,666
Interest cost (income)		350			(347	)		3
Remeasurements:
Return on plan assets (excluding amounts included in interest income)		—			84			84
Payments from plans (benefit payments)		(1,554	)		1,554			—
Transfer in		1,255			(1,255	)		—
Transfer out		(2,682	)		2,682			—
Ending	W	19,398		W	(17,462	)	W	1,936

36

KB Financial Group Inc.

Notes to the Separate Interim Financial Statements

September 30, 2020 and 2019 (Unaudited), and December 31, 2019

16. Net Defined Benefit Liabilities (cont’d)

Details of the net defined benefit liabilities as of September 30, 2020 and December 31, 2019, are as follows:

(In millions of Korean won)	September 30, 2020			December 31, 2019
Present value of defined benefit obligation	W	20,865		W	20,312
Fair value of plan assets		(18,825	)		(19,875	)
Net defined benefit liabilities	W	2,040		W	437

Details of post-employment benefits recognized in profit or loss as employee compensation and benefits for the nine-month periods ended September 30, 2020 and 2019, are as follows:

(In millions of Korean won)	2020		2019
Current service cost	W	1,559	W	1,666
Net interest expenses of net defined benefit liabilities		6		3
Post-employment benefits	W	1,565	W	1,669

17. Other Liabilities

Details of other liabilities as of September 30, 2020 and December 31, 2019, are as follows:

(In millions of Korean won)	September 30, 2020		December 31, 2019
Other financial liabilities
Payables	W	5,257	W	1,134
Accrued expenses		26,134		13,218
Lease liability		551		588
		31,942		14,940
Other non-financial liabilities
Payables		9,814		59,263
Accrued expenses		114,106		128,824
Withholding taxes		10,813		413
		134,733		188,500
	W	166,675	W	203,440

37

KB Financial Group Inc.

Notes to the Separate Interim Financial Statements

September 30, 2020 and 2019 (Unaudited), and December 31, 2019

18. Equity

18.1 Share Capital

Details of share capital and number of issued shares as of September 30, 2020 and December 31, 2019, are as follows:

(In millions of Korean won)	September 30, 2020		December 31, 2019
Type of share		Ordinary share		Ordinary share
Number of authorized shares		1,000,000,000		1,000,000,000
Par value per share (In Korean won)	W	5,000	W	5,000
Number of issued shares		415,807,920		415,807,920
Share capital	W	2,090,558	W	2,090,558

Changes in shares outstanding for the nine-month periods ended September 30, 2020 and 2019, are as follows:

(In number of shares)	2020		2019
Beginning		389,634,335		395,551,297
Decrease		—		(5,916,962	)
Ending		389,634,335		389,634,335

18.2 Hybrid securities

Details of hybrid securities classified as equity as of September 30, 2020 and December 31, 2019, are as follows:

(In millions of Korean won)	Issuance date	Maturity	Interest rate (%)		September 30, 2020		December 31, 2019
The 1-1st Hybrid securities	May 2, 2019	Perpetual bond		3.23	W	349,204	W	349,204
The 1-2nd Hybrid securities	May 2, 2019	Perpetual bond		3.44		49,881		49,881
The 2-1st Hybrid securities	May 8, 2020	Perpetual bond		3.30		324,099		—
The 2-2nd Hybrid securities	May 8, 2020	Perpetual bond		3.43		74,812		—
The 3-1st Hybrid securities	July 14, 2020	Perpetual bond		3.17		369,099		—
The 3-2nd Hybrid securities	July 14, 2020	Perpetual bond		3.38		29,922		—
					W	1,197,017	W	399,085

The above hybrid securities may be redeemed by the Company after 5 or 10 years from the issuance date.

38

KB Financial Group Inc.

Notes to the Separate Interim Financial Statements

September 30, 2020 and 2019 (Unaudited), and December 31, 2019

18.3 Capital Surplus

Details of capital surplus as of September 30, 2020 and December 31, 2019, are as follows:

(In millions of Korean won)	September 30, 2020		December 31, 2019
Share premium	W	13,190,275	W	13,190,275
Other capital surplus		1,465,893		1,465,893
Gain on sales of treasury share		86,646		86,646
Consideration for exchange rights		11,933		—
	W14,754,747		W14,742,814

18.4 Accumulated Other Comprehensive Income

Details of accumulated other comprehensive income as of September 30, 2020 and December 31, 2019, are as follows:

(In millions of Korean won)	September 30, 2020			December 31, 2019
Remeasurements of net defined benefit liabilities	W	(7,693	)	W	(7,664	)

Changes in accumulated other comprehensive income for the nine-month periods ended September 30, 2020 and 2019, are as follows:

(In millions of Korean won)	2020
	Beginning			Changes			Tax effect		Ending
Remeasurements of net defined benefit liabilities	W	(7,664	)	W	(41	)	W	12	W	(7,693	)

(In millions of Korean won)	2019
	Beginning			Changes			Tax effect		Ending
Remeasurements of net defined benefit liabilities	W	(7,144	)	W	(84	)	W	23	W	(7,205	)

18.5 Retained Earnings

Details of retained earnings as of September 30, 2020 and December 31, 2019, are as follows:

(In millions of Korean won)	September 30, 2020		December 31, 2019
Legal reserves	W	557,405	W	482,807
Voluntary reserves		982,000		982,000
Regulatory reserve for credit losses		4,175		4,458
Retained earnings before appropriation		2,111,501		1,624,029
	W3,655,081		W3,093,294

With respect to the allocation of net profit earned in a fiscal term, the Company must set aside in its legal reserve an amount equal to at least 10% of its net income after tax as reported in the separate statement of comprehensive income each time it pays dividends on its net profits earned until its legal reserve reaches at least the aggregate amount of its share capital in accordance with Article 53 of the Financial Holding Company Act. The reserve is not available for the payment of cash dividends, but may be transferred to share capital, or used to reduce accumulated deficit.

39

KB Financial Group Inc.

Notes to the Separate Interim Financial Statements

September 30, 2020 and 2019 (Unaudited), and December 31, 2019

18.5.1 Regulatory reserve for credit losses

Measurement and disclosure of regulatory reserve for credit losses are required in accordance with Articles 26 through 28 of the Supervisory Regulations on Financial Holding Companies.

Details of the regulatory reserve for credit losses as of September 30, 2020 and December 31, 2019, are as follows:

(In millions of Korean won)	September 30, 2020		December 31, 2019
Beginning	W	4,175	W	4,458
Estimated amounts subject to provision (reversal)		934		(283	)
Ending	W	5,109	W	4,175

The adjustments to the regulatory reserve for credit losses for the three-month and the nine-month periods ended September 30, 2020 and 2019, are as follows:

(In millions of Korean won)	2020					2019
	Three months			Nine months		Three months			Nine months
Provision (reversal) of regulatory reserve for credit losses	W	(5,065	)	W	934	W	(405	)	W	(900	)
Adjusted profit (loss) after provision (reversal) of regulatory reserve for credit losses1,2		554,436			1,421,945		(46,055	)		796,389
Adjusted basic earnings (losses) per share after provision of regulatory reserve for credit losses1 (In Korean won)		1,423			3,649		(118	)		2,033
Adjusted diluted earnings (losses) per share after provision of regulatory reserve for credit losses1 (In Korean won)	W	1,406		W	3,614	W	(118	)	W	2,019

¹ Adjusted profit after provision (reversal) of regulatory reserve for credit losses is not in accordance with Korean IFRS and calculated on the assumption that provision (reversal) of regulatory reserve for credit losses before income tax is adjusted to the profit for the period.

² Amount after deducting dividends on hybrid securities.

18.6 Treasury Shares

Changes in treasury shares outstanding for the nine-month periods ended September 30, 2020 and 2019, are as follows:

(In millions of Korean won and in number of shares)

	2020
	Beginning		Acquisition		Retirement		Ending
Number of treasury shares		26,173,585		—		—		26,173,585
Carrying amount	W	1,136,188	W	—	W	—	W	1,136,188

5,000,000 treasury shares are deposited at Korea Securities Depository for issuing exchangeable bonds.

40

KB Financial Group Inc.

Notes to the Separate Interim Financial Statements

September 30, 2020 and 2019 (Unaudited), and December 31, 2019

18.6 Treasury Shares (cont’d)

(In millions of Korean won and in number of shares)

	2019
	Beginning		Acquisition		Retirement		Ending
Number of treasury shares		22,560,240		5,916,962		—		28,477,202
Carrying amount	W	968,549	W	267,639	W	—	W	1,236,188

19. Dividends

The dividends to the shareholders of the Company in respect of the year ended December 31, 2019, of W 2,210 per share, amounting to total dividends of W 861,092 million, were paid in April 2020. The dividends paid to the shareholders of the Company in 2019 were W 759,736 million (W 1,920 per share).

20. Net Interest Expense

Details of interest income and interest expense for the three-month and the nine-month periods ended September 30, 2020 and 2019, are as follows:

(In millions of Korean won)	2020						2019
	Three months			Nine months			Three months			Nine months
Interest income
Due from financial institutions	W	16		W	53		W	147		W	2,042
Loans at amortized cost		964			2,470			660			1,673
Loans at fair value through profit or loss		1,567			3,976			261			2,516
Other		59			185			83			241
		2,606			6,684			1,151			6,472
Interest expense
Debts		586			589			1			2,489
Debentures		33,686			98,126			30,478			92,727
Other		3			9			4			13
	34,275			98,724			30,483			95,229
Net interest expense	W	(31,669	)	W	(92,040	)	W	(29,332	)	W	(88,757	)

21. Net Fee and Commission Expense

Details of fee and commission income, and fee and commission expense for the three-month and the nine-month periods ended September 30, 2020 and 2019, are as follows:

(In millions of Korean won)	2020						2019
	Three months			Nine months			Three months			Nine months
Fee and commission income
Fees earned in Korean won	W	168		W	546		W	214		W	564
Fee and commission expense
Fees paid in Korean won		2,794			6,875			1,261			4,400
Fees paid in foreign currency		122			238			157			236
		2,916			7,113			1,418			4,636
Net fee and commission expense	W	(2,748	)	W	(6,567	)	W	(1,204	)	W	(4,072	)

41

KB Financial Group Inc.

Notes to the Separate Interim Financial Statements

September 30, 2020 and 2019 (Unaudited), and December 31, 2019

22. Net Gains on Financial assets at Fair value through Profit or Loss

Net gains on financial assets at fair value through profit or loss consist of gains or losses related to financial instrument that includes dividend income and gains or losses arising from changes in the fair values, sales and redemptions. Details net gains on financial assets at fair value through profit or loss for the three-month and nine-month periods ended September 30, 2020 and 2019, are as follows:

(In millions of Korean won)	2020				2019
	Three months		Nine months		Three months		Nine months
Gains related to financial instruments at fair value through profit or loss
Dividend income on financial assets designated at fair value through profit or loss	W	3,657	W	10,602	W	3,409	W	10,193
Gains on valuation on financial assets designated at fair value through profit or loss		434		1,041		310		3,614
		4,091		11,643		3,719		13,807
Losses related to financial instruments at fair value through profit or loss
Losses on valuation on financial assets designated at fair value through profit or loss		63		1,283		192		515
		63		1,283		192		515
Net gains on financial instruments at fair value through profit or loss	W	4,028	W	10,360	W	3,527	W	13,292

23. Net Other Operating Income

Details of other operating income and expenses for the three-month and the nine-month periods ended September 30, 2020 and 2019, are as follows:

(In millions of Korean won)	2020				2019
	Three months		Nine months		Three months		Nine months
Other operating income
Dividend income from subsidiaries	W	598,481	W	1,573,411	W	—	W	926,934
Gains on foreign currency transactions		117		117		—		—
Net other operating income	W	598,598	W	1,573,528	W	—	W	926,934

42

KB Financial Group Inc.

Notes to the Separate Interim Financial Statements

September 30, 2020 and 2019 (Unaudited), and December 31, 2019

24. General and Administrative Expenses

24.1 General and Administrative Expenses

Details of general and administrative expenses for the three-month and the nine-month periods ended September 30, 2020 and 2019, are as follows:

(In millions of Korean won)	2020					2019
	Three months			Nine months		Three months		Nine months
Employee benefits
Salaries and other short-term employee benefits—salaries	W	5,973		W	18,125	W	7,090	W	17,860
Salaries and other short-term employee benefits—others		1,173			3,184		990		2,945
Post-employment benefits—defined benefit plans		522			1,565		557		1,669
Share-based payments		1,930			1,243		339		2,052
		9,598			24,117		8,976		24,526
Depreciation and amortization		1,057			2,921		1,329		3,737
Other general and administrative expenses
Travel		(15	)		36		180		816
Communications		196			591		87		485
Tax and dues		49			329		40		331
Publication		85			209		46		193
Rental expense		227			647		209		617
Vehicle		37			92		36		97
Service fees		4,701			14,534		3,360		10,153
Advertising		15			440		67		464
Training		199			503		352		890
Others		1,717			4,913		1,730		5,045
		7,211			22,294		6,107		19,091
	W	17,866		W	49,332	W	16,412	W	47,354

43

KB Financial Group Inc.

Notes to the Separate Interim Financial Statements

September 30, 2020 and 2019 (Unaudited), and December 31, 2019

24.2 Share-based Payments

The Company entered into share-based payment plan for executives and employees of the Company and its subsidiaries.

Details of stock grants linked to long-term performance as of September 30, 2020, are as follows:

(In number of shares)	Grant date		Number of granted shares1		Vesting conditions2
KB Financial Group Inc.
Series 19		Nov. 21, 2017		46,890	Service fulfillment, market performance3 35% and non-market performance5 65%
Series 21		Jan. 01, 2019		25,172	Service fulfillment, market performance3 0~30% and non-market performance4 70~100%
Series 22		Apr. 01, 2019		3,226	Service fulfillment, market performance3 30% and non-market performance4 70%
Series 23		May 27, 2019		1,436	Service fulfillment, market performance3 30% and non-market performance4 70%
Series 24		Jul. 17, 2019		11,224	Service fulfillment, market performance3 30% and non-market performance4 70%
Series 25		Jan. 01, 2020		80,568	Service fulfillment, market performance3 0~30% and non-market performance4 70~100%
Series 26		Mar. 18, 2020		1,086	Service fulfillment, market performance3 30% and non-market performance4 70%
Series 27		June 16, 2020		687	Service fulfillment, market performance3 30% and non-market performance4 70%
Deferred grant in 2015		—		7,674	Satisfied
Deferred grant in 2016		—		8,705	Satisfied
Deferred grant in 2017		—		30,001	Satisfied
Deferred grant in 2018		—		5,960	Satisfied
Deferred grant in 2019		—		26,437	Satisfied
				249,066
Kookmin Bank
Series 75		Jan. 1, 2019		154,997	Service fulfillment, market performance 3 0~50%, and non-market performance4 50~100%
Series 76		Apr. 1, 2019		5,380	Service fulfillment, market performance3 30~50%, and non-market performance4 50~70%
Series 77		May. 27, 2019		4,468	Service fulfillment, market performance3 30~50%, and non-market performance4 50~70%
Series 78		Nov. 21, 2019		36,443	Service fulfillment, market performance3 30%, and non-market performance6 70%
Series 79		Jan. 1, 2020		266,488	Service fulfillment, market performance3 0~50%, and non-market performance4 50~100%
Series 80		Mar 1, 2020		7,711	Service fulfillment, market performance3 30~50%, and non-market performance4 50~70%
Deferred grant in 2015		—		2,759	Satisfied
Deferred grant in 2016		—		19,109	Satisfied
Deferred grant in 2017		—		58,380	Satisfied
Deferred grant in 2018		—		65,511	Satisfied
Deferred grant in 2019		—		98,194	Satisfied
				719,440

44

KB Financial Group Inc.

Notes to the Separate Interim Financial Statements

September 30, 2020 and 2019 (Unaudited), and December 31, 2019

24.2 Share-based Payments (cont’d)

(In number of shares)	Grant date	Number of granted shares1		Vesting conditions2
Other subsidiaries
Stock granted in 2010	—		106
Stock granted in 2011	—		146
Stock granted in 2012	—		420
Stock granted in 2013	—		622
Stock granted in 2014	—		1,028	Services fulfillment,
Stock granted in 2015	—		3,323	market performance3 10~50%
Stock granted in 2016	—		9,103	and non-market performance4 50~90%
Stock granted in 2017	—		36,814
Stock granted in 2018	—		120,189
Stock granted in 2019	—		333,084
Stock granted in 2020	—		254,019
			758,854
			1,727,360

¹ Granted shares represent the total number of shares initially granted to directors and employees that have residual shares at the end of reporting period (Deferred grants are residual shares at the end of the reporting period).

² Executives and employees were given the option of deferring payment of the granted shares (after the date of retirement), payment ratio, and payment period. Accordingly, a certain percentage of the granted amount is deferred for up to five years after the date of retirement when the deferred grant has been confirmed.

³ Relative TSR (Total Shareholders Return): [(Fair value at the end of the contract—Fair value at the beginning of the contract) + (Total amount of dividend per share paid during the contract period)] / Fair value at the beginning of the contract)

⁴ Accomplishment of corporates’ and individuals’ performance results

⁵ EPS, Asset Quality, HCROI, Non-banking sector profit

⁶ EPS, Asset Quality

The stock grant award program is an incentive plan that sets, on grant date, the maximum number of shares that can be awarded. Actual stock granted at the end of the vesting period is determined in accordance with achievement of pre-specified targets over the vesting period.

45

KB Financial Group Inc.

Notes to the Separate Interim Financial Statements

September 30, 2020 and 2019 (Unaudited), and December 31, 2019

24.2 Share-based Payments (cont’d)

Details of stock grants linked to short-term performances as of September 30, 2020, are as follows:

	Estimated number of vested shares1		Vesting Conditions
KB Financial Group Inc.
Stock granted in 2015		7,524	Satisfied
Stock granted in 2016		6,595	Satisfied
Stock granted in 2017		7,385	Satisfied
Stock granted in 2018		14,292	Satisfied
Stock granted in 2019		28,030	Satisfied
Stock granted in 2020		33,690	Proportional to service period
Kookmin Bank
Stock granted in 2015		9,887	Satisfied
Stock granted in 2016		19,662	Satisfied
Stock granted in 2017		30,003	Satisfied
Stock granted in 2018		73,989	Satisfied
Stock granted in 2019		125,530	Satisfied
Stock granted in 2020		111,245	Proportional to service period
Other subsidiaries
Stock granted in 2015		12,190	Satisfied
Stock granted in 2016		40,942	Satisfied
Stock granted in 2017		149,272	Satisfied
Stock granted in 2018		345,625	Satisfied
Stock granted in 2019		551,667	Satisfied
Stock granted in 2020		261,359	Proportional to service period
		1,828,887

¹ Executives and employees were given the option of deferring payment of the granted shares (after the date of retirement), payment ratio, and payment period. Accordingly, a certain percentage of the granted amount is deferred for up to five years after the date of retirement when the deferred grant has been confirmed.

Share-based payment arrangement for subsidiaries was transferred to the Company in 2010, and the related compensation cost paid to the executives and employees of subsidiaries is reimbursed by these companies. The accrued expenses representing share-based payments as of September 30, 2020 and December 31, 2019, are W 109,254 million and W 124,853 million, respectively, and the receivables to be reimbursed by the subsidiaries for the compensation costs are W 99,164 million and W 112,997 million, respectively. In addition, The compensation costs from share-based payments that amount to W 1,243 million and W 2,052 million were recognized for the nine-month period ended September 30, 2020 and 2019 respectively.

46

KB Financial Group Inc.

Notes to the Separate Interim Financial Statements

September 30, 2020 and 2019 (Unaudited), and December 31, 2019

25. Non-operating Income (Expense)

Details of non-operating income and expenses for the three-month and the nine-month periods ended September 30, 2020 and 2019, are as follows:

(In millions of Korean won)	2020				2019
	Three months		Nine months		Three months			Nine months
Non-operating income
Reversal of impairment losses on intangible assets	W	375	W	823	W	—		W	—
Others		506		609		27			621
		881		1,432		27			621
Non-operating expenses
Loss on disposal of property, plant and equipment		—		—		14			14
Impairment losses on intangible assets		—		—		—			4
Donation		617		999		415			1,047
Others		—		7		1			7
		617		1,006		430			1,072
Non-operating income (expenses)	W	264	W	426	W	(403	)	W	(451	)

26. Income Tax Benefit

Details of income tax benefit for the nine-month periods ended September 30, 2020 and 2019, are as follows:

(In millions of Korean won)	2020			2019
Tax payable		—			—
Change in deferred tax assets and liabilities
Origination and reversal of temporary differences	W	4,917		W	824
Tax expense recognized directly in equity
Remeasurements of net defined benefit liabilities		12			23
Consideration for exchangeable rights		(4,526	)		—
		(4,514	)		23
Income tax expense	W	403		W	847

47

KB Financial Group Inc.

Notes to the Separate Interim Financial Statements

September 30, 2020 and 2019 (Unaudited), and December 31, 2019

27. Earnings (Losses) per Share

27.1 Basic Earnings (Losses) per Share

Calculations of basic earnings (losses) per share on the profit attributable to ordinary shares are as follows:

27.1.1 Weighted average number of ordinary shares outstanding

Details of weighted average number of ordinary shares outstanding for the three-month and the nine-month periods ended September 30, 2020 and 2019, are as follows:

(In number of shares)	2020						2019
	Three months			Nine months			Three months			Nine months
Beginning (A)		415,807,920			415,807,920			418,111,537			418,111,537
Acquisition of treasury shares (B)		(26,173,585	)		(26,173,585	)		(28,477,202	)		(26,475,254	)
Weighted average number of ordinary shares outstanding (C=A+B)		389,634,335			389,634,335			389,634,335			391,636,283

27.1.2 Basic earnings (losses) per share

Details of basic earnings (losses) per share for the three-month and the nine-month periods ended September 30, 2020 and 2019, are as follows:

(In Korean won and In number of shares)
	2020				2019
	Three months		Nine months		Three months			Nine months
Profit (loss) for the period	W	555,951,744,329	W	1,435,972,319,024	W	(43,204,911,365	)	W	798,744,809,672
Deduction: Dividends on hybrid securities		6,580,625,000		13,093,125,000		3,256,250,000			3,256,250,000
Profit (loss) attributable to the ordinary equity holders (A)		549,371,119,329		1,422,879,194,024		(46,461,161,365	)		795,488,559,672
Weighted average number of ordinary shares outstanding (B)		389,634,335		389,634,335		389,634,335			391,636,283
Basic earnings (losses) per share (A / B)	W	1,410	W	3,652	W	(119)		W	2,031

27.2 Diluted Earnings (Losses) per Share

Diluted earnings (losses) per share is calculated using the weighted average number of ordinary shares outstanding which is adjusted by the weighted average number of additional ordinary shares that would have been outstanding assuming the conversion of all dilutive potential ordinary shares. The Company has categories of dilutive potential ordinary shares: Stock Grant and ordinary share exchange rights of exchangeable bonds.

A calculation is done to determine the number of shares that could have been acquired at fair value (determined as the average market share price of the Company’s outstanding shares for the period) based on the monetary value of the subscription rights attached to the stock grants. The number of shares calculated above is compared with the number of shares that would have been issued assuming the exercise of stock grants.

In addition, exchange bonds issued for the nine-month period ended September 30, 2020, were included in potential ordinary shares from the exercisable date of the exchange right, and interest expenses after tax for the period, were added to profit for the period attributable to dilutive potential ordinary shareholders.

48

KB Financial Group Inc.

Notes to the Separate Interim Financial Statements

September 30, 2020 and 2019 (Unaudited), and December 31, 2019

27.2.1 Adjusted profit (loss) for diluted earnings (losses) per share

Adjusted profit (loss) for diluted earnings (losses) per share for the three-month and the nine-month periods ended September 30, 2020 and 2019, are as follows:

(In Korean won)
	2020				2019
	Three months		Nine months		Three months			Nine months
Profit (loss) attributable to the ordinary equity holders1	W	549,371,119,329	W	1,422,879,194,024	W	(46,461,161,365	)	W	795,488,559,672
Adjustment
Exchangeable bonds Interest expense		210,675,256		210,675,256		—			—
Adjusted profit (loss) for diluted earnings (losses) per share	W	549,581,794,585	W	1,423,089,869,280	W	(46,461,161,365	)	W	795,488,559,672

¹ The amount is after deducting dividends on hybrid securities.

27.2.2 Weighted average number of ordinary shares outstanding for diluted earnings per share

Adjusted weighted average number of ordinary shares outstanding to calculate diluted earnings per share for the three-month and the nine-month periods ended September 30, 2020 and 2019, are as follows:

(In number of shares)	2020				2019
	Three months		Nine months		Three months		Nine months
Weighted average number of ordinary shares issued and outstanding		389,634,335		389,634,335		389,634,335		391,636,283
Adjustment
Stock grants		3,114,369		3,297,357		—		2,801,308
Exchangeable bonds		1,793,478		602,190		—		—
Adjusted weighted average number of ordinary shares outstanding for diluted earnings per share		394,542,182		393,533,882		389,634,335		394,437,591

49

KB Financial Group Inc.

Notes to the Separate Interim Financial Statements

September 30, 2020 and 2019 (Unaudited), and December 31, 2019

27.2.3 Diluted earnings per share

Details of diluted earnings per share for the three-month and nine-month periods ended September 30, 2020 and 2019, are as follows:

(In Korean won and in number of shares)
	2020				2019
	Three months		Nine months		Three months		Nine months
Adjusted profit (loss) for diluted earnings (losses) per share	W	549,581,794,585	W	1,423,089,869,280	W	(46,461,161,365)	W	795,488,559,672
Adjusted weighted average number of ordinary shares outstanding for diluted earnings (losses) per share		394,542,182		393,533,882		389,634,335		394,437,591
Diluted earnings (losses) per share	W	1,393	W	3,616	W	(119)	W	2,017

28. Supplemental Cash Flow Information

Details of cash and cash equivalents as of September 30, 2020 and December 31, 2019, are as follows:

(In millions of Korean won)	September 30, 2020			December 31, 2019
Due from financial institutions	W	44,239		W	18,537
Restricted cash from financial institutions		(3	)		(3	)
	W	44,236		W	18,534

Significant non-cash transactions for the nine-month periods ended September 30, 2020 and 2019, are as follows:

(In millions of Korean won)	2020			2019
Changes in receivables and payables from consolidated tax	W	213,100		W	(270,303	)
Changes in receivables and payables relating to stock grants		(13,833	)		(6,229	)

Cash inflows and outflows due to interest and dividends for the nine-month periods ended September 30, 2020 and 2019, are as follows:

(In millions of Korean won)	Activity		2020		2019
Prepaid income tax expense		Operating	W	1,156	W	1,574
Interest received		Operating		6,405		5,710
Interest paid		Operating		95,776		95,949
Dividends received		Operating		1,584,015		937,153
Dividends paid		Financing		874,185		762,993

50

KB Financial Group Inc.

Notes to the Separate Interim Financial Statements

September 30, 2020 and 2019 (Unaudited), and December 31, 2019

29. Contingent Liabilities and Commitments

29.1 Commitments

Commitments made with financial institutions as of September 30, 2020 and December 31, 2019, are as follows:

	September 30, 2020				December 31, 2019
	Amount of commitment		Amounts borrowed		Amount of commitment		Amounts borrowed
KEB Hana Bank	W	200,000	W	—	W	50,000	W	—

29.2 Other Matters (including litigation)

a) The Company has no pending lawsuit as the defendant.

b) The ongoing COVID-19 pandemic has had a negative impact on the global economy, and has increased has increased uncertainty in estimation of the Company’s expected credit losses on certain portfolios and potential impairment on assets. The Company’s ability to generate revenue may be adversely affected by the factors including;

- uncertainties arising from significant increases in credit risks of borrowers affected by COVID-19 pandemic

- uncertainties arising from forward-looking macroeconomic information in estimating expected credit losses

- depreciation of Korean won against major currencies causing increase in the payment amount of principal and interests of debts denominated in foreign currencies; and

- a significant decline in fair value of the Company’s investments in companies affected by COVID-19 pandemic.

51

KB Financial Group Inc.

Notes to the Separate Interim Financial Statements

September 30, 2020 and 2019 (Unaudited), and December 31, 2019

30. Related Party Transactions

According to Korean IFRS 1024, the Company includes subsidiaries and key management (including family members) in the scope of related parties. Additionally, the Company discloses balances (receivables and payables) and other amounts arising from the related party transactions in the notes to the separate financial statements. Refer to Note 9 for details on subsidiaries.

Key management includes the directors of the Company, their close family members, and the companies where the directors and/or their close family members have control or joint control.

Significant related party transactions for the nine-month periods ended September 30, 2020 and 2019, are as follows:

(In millions of Korean won)
Subsidiaries		2020		2019
Kookmin Bank	Interest income	W	65	W	1,430
	Fee and commission income		629		583
	Net other operating income1		1,330,407		667,226
	General and administrative expenses		6,057		5,032
KB Securities Co., Ltd.	Net other operating income1		80,000		50,000
	Interest expense		35		—
	General and administrative expenses		875		799
KB Insurance Co., Ltd.	Fee and commission income		—		3
	General and administrative expenses		1,125		1,526
KB Kookmin Card Co., Ltd.	Net other operating income1		100,004		200,008
	General and administrative expenses		484		691
	Net non-operating income		4		5
KB Asset Management Co., Ltd.	Net other operating income1		30,000		—
KB Capital Co., Ltd	Net gains on financial assets at fair value through profit or loss		10,360		13,292
	Fee and commission income		—		1
	General and administrative expenses		92		65
KB Life Insurance Co., Ltd.	General and administrative expenses		360		67
KB Real Estate Trust. Co., Ltd.	Net other operating income1		30,000		4,700
KB Savings Bank Co., Ltd.	Net other operating income1		3,000		5,000
KB Investment Co., Ltd.	Interest income		2,469		1,673
KB Data Systems Co., Ltd.	General and administrative expenses		838		1,512

¹ Net other operating income includes dividend income from subsidiaries.

52

KB Financial Group Inc.

Notes to the Separate Interim Financial Statements

September 30, 2020 and 2019 (Unaudited), and December 31, 2019

30. Related Party Transactions (cont’d)

Significant receivables and payables, and related allowance for loan losses arising from the related party transactions as of September 30, 2020 and December 31, 2019, are as follows:

(In millions of Korean won)
Subsidiaries		September 30, 2020		December 31, 2019
Kookmin Bank	Cash and due from financial institutions	W	44,239	W	18,537
	Other assets		575,339		418,114
	Other liabilities		6,233		35
	Property and equipment		769		152
KB Securities Co., Ltd.	Other assets		45,719		52,068
	Other liabilities		868		—
KB Insurance Co., Ltd.	Other assets		20,215		14,492
	Other liabilities		665		47,580
KB Kookmin Card Co., Ltd.	Other assets		82,017		60,705
	Other liabilities		1,138		1,394
KB Asset Management Co., Ltd.	Other assets		13,018		15,590
KB Capital Co., Ltd.	Financial assets at fair value through profit or loss		391,259		291,501
	Other assets		20,870		18,995
	Other liabilities		92		—
KB Life Insurance Co., Ltd.	Other assets		2,918		3,956
	Other liabilities		6,527		8,636
KB Real Estate Trust Co., Ltd.	Other assets		16,778		13,979
KB Savings Bank Co., Ltd.	Other assets		4,330		3,727
KB Investment Co., Ltd.	Loans at amortized cost		180,000		120,000
	Other assets		8,285		2,904
	Other liabilities		—		59
KB Data Systems Co., Ltd.	Property and equipment		16		438
	Intangible assets		339		1,145
	Other assets		1,651		2,721
	Other liabilities		409		333
KB Credit Information Co., Ltd.	Other assets		820		849
	Other liabilities		—		241

53

KB Financial Group Inc.

Notes to the Separate Interim Financial Statements

September 30, 2020 and 2019 (Unaudited), and December 31, 2019

30. Related Party Transactions (cont’d)

Right-of-use assets and lease liability with related parties as of September 30, 2020 and December 31, 2019, are as follows:

(In millions of Korean won)			September 30, 2020		December 31, 2019
Subsidiary	Kookmin Bank	Right-of-use assets	W	812	W	152

Unused commitments by a related party as of September 30, 2020 and December 31, 2019, are as follows:

(In millions of Korean won)			September 30, 2020		December 31, 2019
Subsidiary	KB Kookmin Card Co., Ltd.	Unused commitments of credit card	W	2,358	W	2,255

Share transactions with related parties for the nine-month periods ended September 30, 2020 and 2019, are as follows:

(In millions of Korean won)			2020		2019
Subsidiary	KB Capital Co., Ltd.	Paid-in capital increase of ordinary shares	W	50,000	W	50,000
Subsidiary	KB Investment Co., Ltd.	Paid-in capital increase of ordinary shares		—		50,000
Subsidiary	Prudential Life Insurance Company of Korea Ltd.	Acquisition of shares		2,310,054		—

Loan transactions with related parties for the nine-month periods ended September 30, 2020 and 2019, are as follows:

(In millions of Korean won)			2020
			Beginning		Loans		Ending
Subsidiary	KB Investment Co., Ltd.	Loan	W	120,000	W	60,000	W	180,000

(In millions of Korean won)			2019
			Beginning		Loans		Ending
Subsidiary	KB Investment Co., Ltd.	Loan	W	50,000	W	70,000	W	120,000

54

KB Financial Group Inc.

Notes to the Separate Interim Financial Statements

September 30, 2020 and 2019 (Unaudited), and December 31, 2019

30. Related Party Transactions (cont’d)

Compensation to key management for the nine-month periods ended September 30, 2020 and 2019, consists of:

(In millions of Korean won)	2020
	Short-term employee benefits		Post-employment benefits		Share-based payments		Total
Registered director (executive)	W	778	W	21	W	133	W	932
Registered director (non-executive)		477		—		—		477
Non-registered director		3,267		107		1,110		4,484
	W	4,522	W	128	W	1,243	W	5,893

(In millions of Korean won)	2019
	Short-term employee benefits		Post-employment benefits		Share-based payments		Total
Registered director (executive)	W	732	W	19	W	479	W	1,230
Registered director (non-executive)		422		—		—		422
Non-registered director		2,785		104		1,573		4,462
	W	3,939	W	123	W	2,052	W	6,114

The Company paid W 65 million and W 225 million to KB Securities Co., Ltd., a subsidiary, for the underwriting and arrangement of debentures and hybrid securities for the nine-month periods ended September 30, 2020 and 2019, respectively.

55