KB Financial : Consolidated Review Report 1st Quarter 2021

KB Financial Group Inc. and Subsidiaries

Consolidated Interim Financial Statements

March 31, 2021 and 2020

(Unaudited)

(With Independent Auditors' Review Report Thereon)

Contents

	Page
Independent Auditors' Review Report	1
Consolidated Interim Statements of Financial Position	3
Consolidated Interim Statements of Comprehensive Income	4
Consolidated Interim Statements of Changes in Equity	6
Consolidated Interim Statements of Cash Flows	7
Notes to the Consolidated Interim Financial Statements	9

152, Teheran-ro,Gangnam-gu, Seoul 06236

(Yeoksam-dong, Gangnam Finance Center 27th Floor)

Republic of Korea

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 consolidated interim financial statements of KB Financial Group Inc. and its subsidiaries (collectively the "Group"), which comprise the consolidated interim statement of financial position as of March 31, 2021, the consolidated interim statements of comprehensive income, changes in equity and cash flows for the three-month periods ended March 31, 2021 and 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 consolidated 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 consolidated 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 consolidated interim financial statements based on our review.

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

Conclusion

Based on our reviews, nothing has come to our attention that causes us to believe that the accompanying condensed consolidated 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 matters

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

As described in note 32.3.i) to the condensed consolidated interim financial statements, the proliferation of COVID- 19 has had a negative impact on the global economy, which may have a greater impact than expected credit losses and potential impairment of assets in a particular portfolio, and it could negatively affect the profit generation capability of the Group.

Other matters

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

The consolidated statement of financial position of the Group as of December 31, 2020, and the related consolidated statements of comprehensive income, changes in equity and cash flows for the year then ended, which are not accompanying this report, were audited by us in accordance with Korean Standards on Auditing and our report thereon, dated March 9, 2021, expressed an unqualified opinion. The accompanying consolidated statement of financial position of the Group as of December 31, 2020 presented for comparative purposes, is consistent, in all material respects, with the audited consolidated financial statements from which it has been derived.

KPMG Samjong Accounting Corp.

Seoul, Korea

May 17, 2021

This report is effective as of May 17, 2021, the review report date. Certain subsequent events or circumstances, which may occur between the review report date and the time of reading this report, could have a material impact on the accompanying condensed consolidated interim financial statements and notes thereto. Accordingly, the readers of the review report should understand that the above review report has not been updated to reflect the impact of such subsequent events or circumstances, if any.

KB Financial Group Inc. and Subsidiaries

Consolidated Interim Statements of Financial Position

March 31, 2021 and December 31, 2020

(in millions of Korean won)
	Notes		March 31, 2021
			(Unaudited)		December 31, 2020
Assets
Cash and due from financial institutions	4,6,7,31		₩	30,148,816		₩	25,608,842
Financial assets at fair value through profit or loss	4,6,11			60,155,939			61,035,455
Derivative financial assets	4,6,8			3,733,367			5,545,385
Loans measured at amortized cost	4,6,9,10			383,242,460			377,166,984
Financial investments	4,6,11			95,929,750			98,695,426
Investments in associates and joint ventures	12			632,067			771,435
Property and equipment				5,389,287			5,433,554
Investment property				2,543,538			2,533,539
Intangible assets				3,308,889			3,351,133
Net defined benefit assets	19			1,666			2,845
Current income tax assets				122,110			109,772
Deferred income tax assets	13,26			80,378			65,058
Assets held for sale				203,230			197,727
Other assets	4,6			35,447,691			30,155,037
Total assets			₩	620,939,188		₩	610,672,192
Liabilities
Financial liabilities at fair value through profit or loss	4,6,14		₩	12,750,079		₩	11,810,058
Derivative financial liabilities	4,6,8			3,370,512			5,222,897
Deposits	4,6,15			339,270,753			338,580,220
Borrowings	4,6,16			50,444,543			49,827,156
Debentures	4,6,17			62,220,973			62,760,687
Provisions	18			707,284			714,903
Net defined benefit liabilities	19			292,806			248,226
Current income tax liabilities				879,084			764,981
Deferred income tax liabilities	13,26			1,214,076			1,162,286
Insurance liabilities	30			55,434,122			54,415,296
Other liabilities	4,6			50,289,586			41,804,023
Total liabilities				576,873,818			567,310,733
Equity
Share capital	20			2,090,558			2,090,558
Hybrid securities	20			2,294,647			1,695,988
Capital surplus	20			16,723,593			16,723,589
Accumulated other comprehensive income	20,28			294,466			612,337
Retained earnings	20			22,903,059			22,517,392
Treasury shares	20			(1,136,188)			(1,136,188)
Equity attributable to shareholders of the Parent Company	20			43,170,135			42,503,676
Non-controlling interests				895,235			857,783
Total equity				44,065,370			43,361,459
Total liabilities and equity			₩	620,939,188		₩	610,672,192

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